AG E N DA Poway City Council
Council Chamber I 13325 Civic Center Drive I Poway , CA I 92064 December 3, 2024 I 7 p.m.
Thank you for participating in your local government and the City of Poway Council meetings.
Meetings I Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. in the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064. The Council Chamber will be open to the public.
Public Meeting Access I Members of the public may attend the City Council meeting in person, or watch the City Council meeting live online. Regular City Council meetings are broadcast live on Cox Communication Channel 24 and Spectrum Channel 19. Council meeting videos are archived and available for viewing on the City's website.
Speakers I Persons wishing to address the Council on matters not on the agenda may do so under Public Comment. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker's Slip to the City Clerk prior to the meeting or the announcement of the item. All comments will be limited to three (3) minutes . Per the Poway Municipal Code, the speaking time may be reduced.
To Watch Live:
www.poway.org/councilmeetings
Agenda Materials I This agenda contains a brief summary of each item the Council will consider.
The Agenda and Agenda Packet is posted seven (7) days prior to regular City Council meetings and are available for viewing on the City's website at www.poway.org. Sign up at https://poway.org/list.aspx to receive email notifications when City Council agendas are published online. Items listed on the agenda with a"#" symbol are in preparation.
PLEASE NOTE: Written comments received via email before 3:00 p.m. the day prior to the meeting will be distributed as formal additional material as well as be made available online prior to the City Council meeting. Written comments received after this deadline will be forwarded to the Council, but not available online until after the City Council meeting.
American Disabilities Act Title II I In compliance with the Americans with Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk's office 858-668-4530 at least 24 hours prior to the meeting.
Steve Vaus
Mayor
Caylin Frank
Deputy Mayor
Peter De Hoff
Councilmember
Anita Edmondson
Councilmember
Brian Pepin
Councilmember
Reminder I As a courtesy to all attendees, please silence all electronic devices and engage in conversations outside the Council Chambers.
The City Council also sits as the City of Poway Planning Commission, Poway Housing Authority, Public Financing Authority and Successor Agency to the Poway Redevelopment Agency CALL TO ORDER:
ROLL CALL:
PLEDGE OF ALLEGIANCE:
MOMENT OF SILENCE:
PRESENTATION: None
PUBLIC COMMENT: In accordance with State law, an item not scheduled on the agenda may be brough t forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. You may speak up to three (3) minute s.
Per the Poway Municipal Code, the speaking time may be redu ced. Speakers have one opportunity to addres s the Council under Public Comment.
CONSENT CALENDAR: The Consent Calendar may be enacted in one motion by the Council with a Roll Call Vote without discussion unless a Councilmember, a member of the public, or City Manager requests that an item be removed for discussion.
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the September 17, 2024, October 1, 2024, and October 15, 2024 Regular City Council Meeting Minutes
3. Award of Contract to Clair Global Integration LLC for the Poway Center for the Performing Arts Sound System Replacement, Bid No. 25-004
4. City's Investment Report as of September 30, 2024
5. Annual Investment Policy Review
6. Acceptance of the Poway Center for the Performing Arts Roof Replacement Project with AOS Inc., dba Superior Roofing, as Complete
7. Acceptance of the FY 2023-24 Water Valve Replacement Project with M-Rae Engineering, Inc., as Complete
8. Acceptance of the Neighborhood Sidewalks Powers Road Project with LC Paving & Sealing, Inc., as Complete
9. Approval of Sixth Amendment to Employment Agreement for the City Manager 2 of 4 Regular City Council Meeting December 3, 2024
ORDINANCES FOR INTRODUCTION:
10. Amendments to Chapters 2.04, 2.08 and 2.18 of the Poway Municipal Code Regarding City Council Conduct
City Manager's Recommendation: It is recommended the City Council introduce the attached Ordinance for first reading by title only, waive further reading and schedule the adoption of the Ordinance for the December 17, 2024 Regular City Council meeting .
PUBLIC HEARINGS:
11. Public Hearing for Proposed San Diego County Water Authority Pass-Through Water Rates City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing, and adopt the resolution with the SDCWA pass-through water rates if a majority protest does not exist.
STAFF REPORTS:
12. Discussion and Possible Action to Fill City Council Vacancy City Manager's Recommendation: It is recommended the City Council consider the alternatives available for filling the City Council vacancy and provide direction to staff .
WORKSHOPS: None
COUNCIL-INITIATED ITEMS: None
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d)) CITY MANAGER ITEMS:
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) CLOSED SESSION: None
ADIOURNMENT:
3 of 4 Regular City Council Meeting December 3, 2024
State of California
County of San Diego
)
) 55.
)
AFFIDAVIT OF POSTING
I, Ellis Webster, Deputy City Clerk of the City of Poway, hereby declare under penalty of perjury that this notice of a Regular meeting as called by the City Council of the City of Poway was posted and provided on November 26, 2024.
Said meeting to be held at 7:00 p.m., December 3, 2024, in the Poway City Council Chambers, 13325 Civic Center Drive, Poway, California . Said notice was posted on the Bulletin Board at the entrance to City Hall. 4 of 4 Regular City Council Meeting December 3, 2024
AGENDA REPORT CityofP oway
DATE:
TO:
FROM:
December 3, 2024
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk
(858) 668-4535 or [email protected]
CITY COUNCIL
SUBJECT: Approval of the September 17, 2024, October 1, 2024, and October 15, 2024 Regular City Council Meeting Minutes
Summary
The City Council Meeting Minutes submitted hereto for approval are:
• September 17, 2024 Regular City Council Meeting Minutes • October 1, 2024 Regular City Council Meeting Minutes
• October 15, 2024 Regular City Council Meeting Minutes The Poway City Council sits as the Poway Planning Commission, the Poway Housing Authority, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency.
Recommended Action:
It is recommended the City Council approve the September 17, 2024, October 1, 2024, and October 15, 2024 Regular City Council Meeting Minutes.
Public Notification:
None.
Attachments:
A. September 17, 2024 Regular City Council Meeting Minutes B. October 1, 2024 Regular City Council Meeting Minutes C. October 15, 2024 Regular City Council Meeting Minutes Reviewed/Approved By:
-
W~ d aserman
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
Approved BY,·
Chr~
City Manager
1 of 13
December 3, 2024, Item #2
CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
September 17, 2024
City Council Chambers
13325 Civic Center Drive, Poway, California
(Per Government Code 54953)
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER:
Mayor Vaus called the Regular Meeting to order at 7:00 p.m.
ROLL CALL:
Present: Brian Pepin, Peter De Hoff, Anita Edmondson, Caylin Frank, Steve Vaus STAFF MEMBERS PRESENT:
City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; Director of Development Services Julie Procopio; Director of Finance Craig Schmollinger; Director of Human Resources and Risk Management Jodene Dunphy; Director of Public Works Eric Heidemann; Director of Community Services Audrey Denham; Fire Chief Jeff Chumbley; Captain Claudia Delgado, Sheriffs Department. (Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:
Deputy Mayor Frank led the Pledge of Allegiance.
MOMENT OF SILENCE:
Mayor Vaus led a moment of silence.
PRESENTATIONS:
None.
PUBLIC COMMENT:
Vanessa Springett spoke in support of her candidacy for District 2, Poway City Council.
ATTACHMENT A
2 of 13
December 3, 2024, Item #2
City of Poway - Minutes - September 17, 2024
Arthur Blain promoted an honor code of conduct for elected Councilmembers and City Council candidates.
Gary Housman shared safety concerns for the corner of Espola Road and Twin Peaks Road.
Steve Wickens shared concerns regarding traffic speed on St. Andrews Drive.
CONSENT CALENDAR:
Motioned by Councilmember De Hoff, seconded by Councilmember Pepin to approve Consent Calendar Items 1 through 11. Motion carried 5/0 by the following roll-call vote:
Ayes:
Noes:
Abstained:
Absent:
Disqualified:
Pepin, De Hoff, Edmondson, Frank, Vaus
None
None
None
None
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Second Reading and Adoption of Ordinance No. 871 entitled "An Ordinance of the City Council of the City of Poway, California, Approving a Specific Plan Amendment (SPA) 22- 0002 to the South Poway Specific Plan Allowing a Change of the Land Use Designation from Mineral Resource Extraction to Light Industrial on Two Pad Sites Located Within an 83-Acre Parcel, Thereby Allowing Development of the Nighthawk Battery Energy Storage System on Pad 2; Assessor's Parcel Number 320-031-03-00"
The following individual spoke in support of Item #2:
Joe St. Lucas
The following individuals spoke in opposition to Item #2:
Melissa Morris
Mary Shweid
Amir Mansoor
Christina Hennigan
Tyra Aeling
Jim Irish
Julie Gertser
Kaven Kuhn
Anushree Jain
Sally Lutz
Gary Housman
Lori Grennan
Council discussion ensued. Council addressed concerns regarding proximity to residential properties, fire safety risks, and hazard risks specific to Battery Energy Storage System (BESS) facilities, noting recent incidents San Diego County. Council responded positively to the fire and safety mitigation measures included in the project, noting the project goes above and beyond California state requirements.
3 of 13
December 3, 2024, Item #2
City of Poway - Minutes - September 17, 2024
Sohail Suryavanshi, Project Manager of Arevon Energy, and Keith Latham, representing the applicant, responded to Council questions. They discussed the evolution of battery technology. The applicant explained the technological advancements and safety standards differentiating their project from other BESS facilities located throughout the County. Mr.
Latham discussed earthquake risk, noting the entire project was designed according to California standards to mitigate such risk.
Responding to Council questions, Fire Chief Chumbley discussed fire safety, emergency response and mitigation strategies for BESS facilities.
Deputy Mayor Frank noted her regret that many of tonight's attendees were not in attendance at the August 20 City Council Public Hearing in which Ordinance No. 871 was introduced. She explained San Diego Fire-Rescue Battalion Chief Robert Rezende, a regional expert on BESS facilities, was in attendance that night to respond to questions or concerns.
City staff confirmed public notices were sent to local businesses and no responses were received, nor any concerns expressed by surrounding businesses.
City Attorney Alan Fenstermacher discussed the Community Benefit Agreement, noting the comprehensive indemnification provisions.
3. Award of Agreement to Blue Pacific Engineering Construction, Inc. for Booster Pump Replacement; Bid No. 25-003
4. City's Investment Report as of June 30, 2024
5. Award of Agreement to Chambers Inc. dba Roof Construction for Public Facilities Renovation Roofing Replacement at the Crosthwaite Operations Building, and Appropriation of Funds
6. Award of Agreement to ID Construction for Public Facilities Renovation Tennis Court Fencing Replacement at Poway Community Park
7. Award of Agreement to Shade Structure Inc. dba USA Shade for the Public Facility Renovation Silverset Shade Area Utilizing Sourcewell Cooperative Purchasing Program Contract No. 010521-LTS-6
The following individual spoke in support of Item #7:
Sarah Brady
8. Authorization to Purchase One (1) Mobile Column Lift System Utilizing Sourcewell Cooperative Purchasing Program Contract #013020-ARP
9. Approval of Parcel Map for Tentative Tract Map (TTM) 22-001 (Del Norte Professional Terraces Condominium Conversion); Del Norte Professional Building LLC & 12036 Saticoy St. LLC, Applicant (APN 275-461-12-00)
10. Approval of Parcel Map for Tentative Parcel Map (TPM) 22-0001 (Poway Road Urban Lot Split); Walsh Engineering & Surveying, Inc., Applicant (APN 323-180-26) 4 of 13
December 3, 2024, Item #2
City of Poway - Minutes - September 17, 2024
11. Tentative Agreement Amending the Memorandum of Understanding between the City of Poway and the Poway Firefighters' Association
ORDINANCES FOR INTRODUCTION:
None.
PUBLIC HEARINGS:
None.
STAFF REPORTS:
None.
WORKSHOPS:
None.
COUNCIL-INITIATED ITEMS:
12. Letter in Support of Proposition 36: Homelessness, Drug Addiction and Theft Reduction Act Deputy Mayor Caylin Frank presented the item. Ms. Frank provided background on the voter approved Proposition 47 from 2014, meant to reduce prison overcrowding, having unintended consequences for cities and law enforcement such as increases in retail theft and trafficking of deadly drugs.
Ms. Frank explained Proposition 36 is a citizen initiative, called the Homelessness, Drug Addiction and Theft Reduction Act, seeking to change provisions of Proposition 47 and close the loopholes related to drug related crimes and drug and mental health treatment.
Proposition 36 would increase penalties for smash-and-grab crimes and create tougher penalties and accountability for repeat retail offenders and enact stricter penalties for drug dealers. She noted the initiative would promote drug and mental health treatment by restoring incentives for people who utilize drug courts that mandate treatment.
Deputy Mayor Frank noted Poway remains the safest city in San Diego County, however it is not immune to the impacts of Proposition 47.
Public Comment:
None.
End of Public Comment.
Council discussion ensued noting frustration over the negative impact of retail theft on small, local businesses and responded positively to the strengthening of penalties and enforcement for these types of crimes.
City Council concurred to formally submit a letter on behalf of the City in support of Proposition 36.
5 of 13
December 3, 2024, Item #2
City of Poway - Minutes - September 17, 2024
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d))
Councilmember De Hoff thanked the Fire Department on its handling of a structure fire in San Diego. Mr. De Hoff provided updates on the Metro Wastewater Commission Joint Powers Authority and its Pure Water Program.
Councilmember Edmondson reported attending the 59th Annual Poway Rotary Parade and thanked the Fire Department for their participation in the event. Ms. Edmondson also congratulated the Poway Historical Society for kicking off their 60th Anniversary celebration.
Deputy Mayor Frank invited residents to attend the upcoming Poway Rodeo scheduled September 27 and September 28, 2024.
Mayor Vaus thanked Deputy Mayor Frank for attending the San Diego Association of Governments (SANDAG) meeting as Council alternate. He provided updates on SANDAG and noted he would bring forward a request for concurrence to oppose Measure G at the next regularly scheduled meeting.
CITY MANAGER ITEMS:
None.
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.
CLOSED SESSION:
13. Conference with Legal Counsel - Existing Litigation Government Code§ 54956.9(d)(1) - Name of Case: Poway Alliance v. City of Poway, et. al., (San Diego Superior Court) Case No. 24CU009784C
Mayor Vaus recessed the Regular City Council meeting into Closed Session at 8:38 p.m.
ADJOURNMENT:
City Attorney Alan Fenstermacher reported no action was taken.
The meeting was adjourned at 8:55 p.m.
Carrie Gallagher, CMC
City Clerk
City of Poway, California
6 of 13
December 3, 2024, Item #2
CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
October 1, 2024
City Council Chambers
13325 Civic Center Drive, Poway, California
(Per Government Code 54953)
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER:
Mayor Vaus called the Regular Meeting to order at 7:00 p.m.
ROLL CALL:
Present: Brian Pepin, Peter De Hoff, Anita Edmondson, Caylin Frank, Steve Vaus STAFF MEMBERS PRESENT:
City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; Director of Development Services Julie Procopio; Director of Finance Craig Schmollinger; Director of Human Resources and Risk Management Jodene Dunphy; Director of Public Works Eric Heidemann; Fire Chief Jeff Chumbley; Captain Claudia Delgado, Sheriff's Department.
(Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:
Deputy Mayor Frank led the Pledge of Allegiance.
MOMENT OF SILENCE:
Mayor Vaus led a moment of silence.
PRESENTATIONS:
None.
PUBLIC COMMENT:
Janet Lettang spoke regarding the Hazardous Tree Removal Mitigation Grant Project Phase 2 update and provided information on where the public can locate these updates.
ATTACHMENT B
7 of 13
December 3, 2024, Item #2
City of Poway - Minutes - October 1, 2024
Mark Noet spoke regarding issues surrounding the pedestrian bridge located over the creek near Painted Rock Elementary School.
Harvey Stern shared his concerns over potential changes to water quality in Poway.
CONSENT CALENDAR:
Motioned by Mayor Vaus, seconded by Councilmember De Hoff to approve Consent Calendar Items 1 through 4. Motion carried 5/0 by the following roll-call vote:
Ayes: Pepin, De Hoff, Edmondson, Frank, Vaus
Noes: None
Abstained: None
Absent: None
Disqualified: None
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the June 18, 2024 Regular City Council Meeting Minutes
3. Fourth Amendment to the Exclusive Negotiating Rights Agreement with Wakeland Housing and Development Corporation for the Monte Vista Affordable Housing Project (APN 275- 460-61-00)
4. Adoption of a Resolution No. H-24-01 of the Poway Housing Authority Board Declaring Certain Real Property Owned by the Authority Located at 12674 Monte Vista Road (APN 275-460-61-00) as Exempt Surplus Land for Purposes of the California Surplus Land Act ORDINANCES FOR INTRODUCTION:
None.
PUBLIC HEARINGS:
None.
STAFF REPORTS:
None.
WORKSHOPS:
None.
COUNCIL-INITIATED ITEMS:
5. Opposition to Measure G: Measure to Fund San Diego County Transportation, Infrastructure, and Safety Projects Through a Half-Cent Sales Tax
Mayor Vaus presented the item. He provided background, noting the San Diego Association of Governments (SAN DAG) is proposing a new tax to fund mass transit projects in San Diego 8 of 13
December 3, 2024, Item #2
City of Poway - Minutes - October 1, 2024
County. Mayor Vaus voiced his opposition to the tax on the basis the projects have little to no benefit for Poway residents, SANDAG's failure to deliver transportation improvements, including highway improvements as previously promised, and saddling taxpayers with another sales tax increase.
Public Comment:
None.
End of Public Comment.
City Council concurred to direct staff to formally submit an open letter to Residents in Poway stating the City Council's strong opposition to Measure G, urging residents to vote NO on Measure G and imploring SANDAG to deliver on promises made to voters in 2004.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d))
None.
CITY MANAGER ITEMS:
None.
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.
CLOSED SESSION:
None.
ADJOURNMENT:
The meeting was adjourned at 7:11 p.m.
Carrie Gallagher, CMC
City Clerk
City of Poway, California
9 of 13
December 3, 2024, Item #2
CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
October 15, 2024
City Council Chambers
13325 Civic Center Drive, Poway, California
/fr~. (Per Government Code 54953) . <•'-~i~,·
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway 'H(?_lising Authority/Public Financing Author ity and Successor Agency to the Poway Redevelopm ent Agency) ·:'\
CALL TO ORDER: '-_J;it_r: >· :\~
., ,;"'" '"~1~l\i},,.
::~: ~:~•L~alled the Regular Meeting to order •:,;~ef /\, iitt~, -·;(i~t\,'_, <.~:·'\'. ;.: ,'
Present: Brian Pepin, Peter De Hoff, Anita Edmondsdn, Caylin\Frank, Steve Vaus -~?syt: .-- . ):t{Itt·
STAFF MEMBERS PRESENT: ,,,, ,):' ):/ ~\~_},~.:-~_,>_<_._.:;·. ,_;:;::_;;_:f\\ ~\ .:, -:_'-.. >/<<\~).·. '(f]t\>::'.
City Manager Chris Hazeltine; Assista'rit ::City '.·M ~(lqger Wenay;J<aserman; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; DirJtfor \of -Deveiopinent Services Julie Procopio; Director of Finance Craig S~Qfll(?llinger; Director _o( Hdhi~ n,;Resources and Risk Management Jodene Dunphy; Director p['.Public Works' Ede. Heidemann; : Director of Community Services Audrey Denham; Fire c,hl_!3f 'Jeff Chumbley ; Captain Claudia Delgado, Sheriffs Department. . • • . .. (Note: Hereinafter the ti!les Mayo~ .. Deputy Mayor';:Councilmember, City Manager, Assistant City Manager, City AttorneyXGiJy Cl~_rk ;an·q D_if~ct9r of Finance shall be used to indicate Mayor/Chair, Deputy MayorNiGe Chair,;Cp_LJhcilmefr'iber/Direqtqr; City Manager/Executive Director, Assistant City Margiger/As~1stant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Directo( ofFinanceiFinance Officer.) -~/t\~t-:·· '•;, ·: '-~-- >~:.=<~i. ~:-r-~,-.: ~"\ ·,~f~--.;
PLEDGE -OF ALLEGIANCE:
Deputy Mayor .Frank led the ~l~dge of Allegiance.
MOMENT OF SILENCE: ,- ::,;/ ... :-'
Mayor Vaus led a morri~nt of silence.
PRESENTATIONS:
None.
PUBLIC COMMENT:
Tony Rubino, speaking on behalf of the North County Special Needs Community Foundation, announced the 10th Annual Poway Heroes Softball Tournament to be held on November 8, 2024
ATTACHMENT C
10 of 13
December 3, 2024, Item #2
City of Poway - Minutes - October 15, 2024
at Sportsp/ex USA Poway .
CONSENT CALENDAR:
Motioned by Mayor Vaus, seconded by Deputy Mayor Frank to approve Consent Calendar Items 1 through 6. Motion carried 5/0 by the following roll-call vote:
Ayes: Pepin, De Hoff, Edmondson, Frank, Vaus
Noes: None
Abstained: None ,,\
Absent: None
Disqualified: None ,d'.~)~};'
1. Approval of Reading by Title Only and Waiver of Reading'Jrj~Full ofQrqinances on this Agenda ,._:; \·,\,~,. ·:•'' '·:;:\2>~~:0s_
2. Approval of the July 16, 2024, and August 6, 2p3tRegular City C6u,~9JJ_ Meeting Minutes __ ,:_~·;\)r... ··\i·:</·::,
3. Adoption of the 2025 City Council Meeting Calendar '·· •• •• <: :: , ,1~l~tf· -.. :
4. Award of Agreement to Brian Cox Mechanical,Nqp. for;:Public Facilities Renovation HVAC Replacement at City Hall Server Room ·,~,J}>;:t(>'
$:;.', '\~-:~~::•:- .::,.,'
.. ,,~. '- '~\-:,~ ;_~--<~:- ::·> ' . ·~:::;:::,:
5. Award of Agreement to NBS Goverrfme
0 nt Financial GroLip'. dba NBS for Annual Levy Process for Special Districts and Fire Proted ib'rti p'e{ti~Lffax; RFP"Nb.\ 25-003 ft,, '-'·:\z;f);.c . '',ti;E>-
6. Resolution No. 24-066, Approving Changes to th~City of foway Position Classification Plan, Part-Time Temporary/Seasorjal Wage 'S,¢h~dule, and No'n-Safety Salary Schedule and Authorization to Establish a· Different1alf for Specific Part-Time Temporary/Seasonal Employees .,;/\'<~7 • •• • '
'\:tfut:\.. .::::·:· ··
ORDINANCES FOR INTRODUCTION:+
None.
PUBLlf HEARINGS:
None. \
·,, '
STAFF REPORTS:
7. Set Public Hearing J9f :Proposed San Diego County Water Authority Pass-Through Water Rates for 2025 lmp_lementation
Director of Finance Craig Schmollinger presented the item along with a PowerPoint presentation. He explained the San Diego County Water Authority (Water Authority) from which the City purchases nearly all of its untreated water, increased water rates for 2025 significantly beyond what was anticipated when the City of Poway's current four year water rates were adopted in November 2021.
Mr. Schmollinger explained the concept of a pass-through provision, primarily if Water Authority costs or other costs outside of an agency's control, such as electricity, increase 11 of 13
December 3, 2024, Item #2
City of Poway - Minutes - October 15, 2024
beyond what was assumed in a rate model, the increases are passed on directly to customers.
He stated, 20 of the 23 water retail providers in San Diego County have pass-through provisions in their adopted rate structure. The City of Poway does not currently have a pass through provision in its rate structure but staff will recommend consideration for including pass-through provisions in the next full rate study. Staff is bringing forward the Water Authority pass- through rates at this time because the rate changes taking effect January 1, 2025 are more than double the assumed annual increase of 6% to Poway. The fiscal impact of these changes to Poway is an additional $1.27 million in 2025 for purchased water costs. The City's water fund is unable to absorb this substantial unplanned increase in new water purchase costs.
Mr. Schmollinger discussed factors driving the Water Authority !it'i increase. ~-~::_~~;:: : i::~ '·
Mr. Schmollinger explained the City retained Raftelis F,:inahdliif Consultants as third-party water rate setting experts to analyze the water rate ,!Jlbcl'ef basecf9 n) arge wholesale water purchase cost increases from the Water Authority, p~ls,ulate equitable '.,tng legal pass-through rate adjustments for consideration, and comply wit~'Pr'oposition 218 and;qJher legal statutes. :\}{_:::·:-· ~\t::~t ... -~.
Mr. Schmollinger provided a breakdown otthf 'average single family re;@ib tial customer impact, showing the existing, approved, and propp~ed est[roc1ted water bills for average water use Poway ~esid~nts. Mr. Schmollinger noted !he Pf8-P.9or.fi9 pass-through adjustments to the average resIdentIal customer would ,equate to Just·o:;1.~rLc:1' 3% increase. He also shared that a bill estimator tool was being posted on the City's website;for water customers to estimate the impact on their individual bills. Mr: Schmollinger noteclc the City has remained at the countywide average since they adopfod the 4~yec:1( rate a·cljustments in 2021. ·}~f;.:_, ·-·-:\~t~ttitt>>'.~,. ~~--~}j(>,
Mr. Schmollinger showed the proposed Water Authorjty ipass ~through rates, comparing the current adopted 2025 rates } proposed pass-through aajUstment rates, and the proposed revised rates. He noted the rec6fo mended Council action would set the public hearing for the consideration ofthe pass-throug ~)ates on·oec;;ember 3, 2024 and authorize the issuance of a Proposition 218 notice, which isJhe 45-day r~quired notice mailed to all water served parcels and owners of thosf p9rcels, ·tJi:r ·,z '-: ·:·:::·. -~;-·\ ..... -<-<JJ·"'r -,·:-.... ~\,·:<: ••. ,, --=.,.:~·:,:~ • ·:i--:~. '\,.
Public ,Gommeht: .\
' ~' \. : ' ;· '\~-:
-'-'"t '., End of Public Comment , .
' i{}<ci', ··;j
Council clis§ussion ensue,d including their responsibility in maintaining the water system and the impacts"c:iHhe City's water supplier's (Water Authority) substantial increases on the current water rate structure,wa,s hoted.
Motioned by May'or Vaus, seconded by Deputy Mayor Frank to direct staff to set the public hearing for December 3, 2024 and proceed with the Proposition 218 process which includes mailing the notice of public hearing to ratepayers pursuant to California law for this proposed wholesale pass-through water rate adjustment. Motion carried unanimously.
WORKSHOPS:
None.
12 of 13
December 3, 2024, Item #2
City of Poway - Minutes - October 15, 2024
COUNCIL-INITIATED ITEMS:
None.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d))
Councilmember Edmondson congratulated the Poway Chamber of Commerce for hosting the 2025 Poway Fall Festival on October 6th, and thanked City of Poway Public Works staff for their assistance with the event. She thanked the Fire Department for hosting the Poway Fire Open House on October 12th at the Poway Fire Department Training Tow.e.t itAcfditionally, she reported attending the Poway On Stage 35th Anniversary Gala at the Poway,·center for the Performing Arts (PCPA) on October 12th, a fundraising event featuring a perfdrmance by Kristin Chenoweth. ~:Sf'.:·~--.-... :;;~)\t~,
Deputy Mayor Frank wished her husband a happy 8th wedding annivef~~iy. She thanked Poway Fire personnel for their response to a local brush fire ori'\the Poway an C1ti ;of San Diego border and reminded all Poway residents of the importance ;qf Jl'aving a fire evacuatibn plan. e:t1~iF:· ·::>.
Mayor Vaus also reported attending the Po½(}1y, On Stage_ .35th Anniversary_ Gala, and congratulated Poway On Stage and PCPA staff on•tfie ~ucce~sf.ul event. ·,,, CITY MANAGER ITEMS: •~;'.:·•,{:ft;;:
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CITY ATTORNEY ITEMS: (IQgluding any pul:>lic rep()rt of any ,~ction'taken in closed session) None.
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:,,•,. Carrie Gallagher, CMC
City Clerk
City of Poway, California
13 of 13
December 3, 2024, Item #2
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
December 3, 2024
Honorable Mayor and Members of the City Council
Audrey Denham, Director of Community Services~
I
Roger Morrison, Senior Management Analyst ~
(858) 668-4581 or [email protected]
CITY COUNCIL
Award of Contract to Clair Global Integration LLC for the Poway Center for the Performing Arts Sound System Replacement, Bid No. 25-004 This action would award a contract to replace the sound system at the Poway Center for the Performing Arts (PCPA). This project involves replacement of speakers, mixers, patch bays, power distribution systems, and associated equipment.
Recommended Action:
It is recommended the City Council:
1) award the contract for PCPA Sound System Replacement to Clair Global Integration LLC in the amount of $765,100.00;
2) authorize the City Manager to execute all necessary documents associated with the contract; and 3) appropriate $96,610.00 from Capital Improvement Projects Fund 1060 to Project MN067.
Discussion:
The PCPA is a 809-seat theater that serves as the venue for professional performances as well as school events and rentals by community groups. In calendar year 2023, the PCPA hosted 158 performances with a total attendance of 58,000 people. The primary sound system at the PCPA was last upgraded in 2009, and many components have begun to fail. In addition, as sound system technology continues to improve, the existing system no longer meets current professional standards in terms of sound quality and connectivity with other equipment.
As part of the approved FY22-23 budget, the City hired a sound design consultant, Apeiro Design, to design a replacement sound system for the PCPA. The intent was once the replacement sound system was designed, the City would then have the necessary specifications to bid the project. Modeling was done to ensure the resulting system would deliver professional sound evenly throughout the venue, and close coordination with PCPA staff to ensure the system will meet the needs of the wide variety 1 of 12
December 3, 2024, Item #3
of groups that use the facility . The design included the full basic system, with four potential additive alternates that were strongly desirable but less critical to system operation:
1) The replacement system includes two main speaker clusters, one hanging on each side of the stage, to provide stereo capability the existing system lacks. In the basic design, the existing center cluster would be left in place to provide a sound source in the center also, which is important for theatrical productions. The center cluster is outdated, not fully compatible with the new system, and subject to failure as it continues to age. The first additive alternate is replacement of the center cluster with a new, smaller cluster matching the rest of the new system and with reduced maintenance requirements.
2) The second additive alternate is the purchase of a set of 8 wireless microphones, a receiver system, and all related equipment. The City currently rents this type of equipment for events that require it, creating an ongoing cost and reducing reliability. 3) The third additive alternate is the purchase of a power distribution unit to deliver electrical power to all areas of the stage. The City currently rents this type of equipment, creating an ongoing cost and reducing reliability.
4) The fourth additive alternate is replacement of the monitoring system that provides sound monitoring to the performers onstage. This equipment was originally scheduled for replacement in a later year, but inclusion of this package within the current project will reduce overall cost and ensure system compatibility.
The request for bids based on Apeiro's design was released on September 19, 2024. It was posted on Bid Net for wide availability, and the legal notice was posted in the Poway News Chieftain on October 3 and 10, 2024. Two addenda were issued to answer questions raised by potential bidders. Five companies were present at the required prebid walk-through, two of which ultimately submitted bids.
Bids were opened on November 5, 2024. The following bids were received:
Item Clair Global Integration LLC EIDIM Group, Inc.
Base Bid $625,000.00 $699,759.78
Additive Alternate #1 $ 40,000.00 $ 31,833.36
Additive Alternate #1 $ 25,200.00 $ 24,431.28
Additive Alternate #1 $ 17,000.00 $ 20,610.00
Additive Alternate #1 $ 57,900.00 $ 74,495.23
Total with all Additive Alternates $765,100.00 $851,129.65 The low base bid of $625,000.00 submitted by Clair Global Integration LLC is an acceptable bid that is responsive to and meets the requirements of the bid specifications. Staff is recommending the installation of all additive alternate items, which brings the total project bid to $765,100.00.
Given the nature of the project, staff is recommending the City include a 10% contingency budget for the project in case any unforeseen issues arise during construction, bringing the total funding needed to $841,610.00. There is currently $745,000.00 appropriated for this project in this year's budget. Staff is therefore recommending an appropriation of $96,610.00 to ensure sufficient funding for completion.
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December 3, 2024, Item #3
The PCPA is a joint-use facility owned and operated by the City on the property of the Poway Unified School District (PUSD). As part of the joint-use agreement, PUSD reimburses the City for 35% of operating costs as well as 35% of the costs of capital improvements. The City will invoice PUSD at the completion of the project for reimbursement of 35% of the actual final cost. Taking as an estimate the total bid amount plus the 10% contingency, this would reduce the City's final cost to $547,046.50.
To avoid interruptions in use of the PCPA, installation of the sound system is scheduled to occur during the standard maintenance shutdown in the summer of 2025.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The cost to complete the PCPA Sound System Replacement, including all additive alternates and a 10% contingency, is estimated at $841,610.00. There is currently $745,000.00 in this year's Capital Improvement Plan project budget (Fund 1060, Project MN067). Staff is recommending the City Council appropriate $96,610.00 from the Capital Improvement Fund's Unassigned Fund Balance (1060) to the PCPA Sound System Replacement budget (MN067). Sufficient funds are available for this request.
Based on the agreement between the City and PUSD, PUSD will reimburse the City 35% of the final cost of the project, or up to $294,563.50 according to the current estimate with contingency, which will be returned to the noted project funding sources on a proportional basis.
Public Notification:
None.
Attachment:
A. Construction Contract
Reviewed/Approved By:
Assistant City Manager
3 of 12
Reviewed By:
Alan Fenstermacher
City Attorney
December 3, 2024, Item #3
CONSTRUCTION CONTRACT
CITY OF POWAY
POWAY CENTER FOR THE PERFORMING ARTS SOUND
SYSTEM REPLACEMENT
This Contract made and entered into this 3rd day of December, 2024, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and Clair Global Integration LLC, hereinafter referred to as "Contractor." The City and the Contractor, for the consideration hereinafter named, mutually agree as follows:
1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include:
a. This Contract
b. Contract Addenda
c. Contract Change Orders
d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications
f. Contract Plans
g. General Condition
h. Special Conditions
i. Standard Specification for Public Works, most current edition
2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all.
3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement: removal of the existing sound system and installation of a new sound system at the Poway Center for the Performing Arts.
The contractor shall be responsible for the completion of the structural design for the structural rigging systems and supports for the new sound system components.
This will include the submittal of the design for DSA for review and permitting.
4. Contractor agrees to perform all the said work and furnish all the said materials at their own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, 4 of 12 ATTACHMENT A
December 3, 2024, Item #3
the work hereinafter set forth in accordance with the Contract adopted by the City Council.
5. City agrees to pay and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated sum of $765,100.00 (the "Contract Price").
City agrees to make progress payments and final payment in accordance with the method set forth in the Special Provisions.
6. Contractor agrees to commence construction of the work provided for herein within Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without interruption, and to complete the construction thereof within 150 Working Days after the date specified in the Notice to Proceed.
7. Time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum of $500.00 per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City. By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty.
8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired, or otherwise changed.
9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects. Travel and subsistence pay shall be paid in accordance with Labor Code §1773.1 . .
10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by Contractor or by any subcontractors under Contractor) less than the prevailing rate described above on the work provided for in this Contract.
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December 3, 2024, Item #3
11. Contractor and subcontractors shall comply with Labor Code § 1810 and § 1811 which stipulates that eight hours labor constitutes a legal day's work, and § 1812 which stipulates that the Contractor and subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed by them in connection with the work performed under the terms of the Contract. Failure to comply with these sections of the Labor Code will subject the Contractor to penalty and forfeiture provisions of the Labor Code§ 1813.
12. Contractor will comply with the provisions of Labor Code§ 1777.5 pertaining to the employment of apprentices to the extent applicable to this Contract.
13. Contractor, by executing this Contract, hereby certifies:
"I am aware of and will comply with the Labor Code § 3700 by securing payment for and maintaining in full force and effect for the duration of the contract, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of the Contract. The City, its officers, or employees, will not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this paragraph."
Contractor further agrees to require all subcontractors to carry Workers' Compensation Insurance as required by the Labor Code of the State of California.
14. Contractor shall, concurrent with the execution of this Contract, furnish two bonds approved by the City, one in the amount of One Hundred Percent (100%) of the Contract Price, to guarantee the faithful performance of the work ("Performance Bond"), and one in the amount of One Hundred Percent (100%) of the Contract Price to guarantee payment of all claims for labor and materials furnished ("Payment Bond"). This Contract shall not become effective until such bonds are supplied to and approved by the City.
15. a. Contractor shall procure and maintain at its own expense, until completion 6 of 12
of performance, commercial general liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers and agents and independent contractors. Contractor shall provide insurance on an occurrence, not claims made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess insurance, personal and advertising injury coverage shall be triggered by an "offense" while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period.
December 3, 2024, Item #3
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b. Contractor shall further procure and maintain at its own expense, until completion of performance, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers and agents and independent contractors in performing the services required by this Agreement.
c. Contractor shall further procure and maintain at its expense, until completion of performance, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of employees employed by the Contractor pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Project to do the same.
Worker's Compensation Insurance:
o Contractor has no employees and is exempt from workers' compensation requirements.
o Contractor carries workers' compensation insurance for all employees .
d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an "A" policyholder's rating or better and a financial rating of at least Class VII, in accordance with the current Best's Ratings.
e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and, except for worker's compensation coverage, name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City's review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
December 3, 2024, Item #3
g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, volunteers, agents and independent contractors, that result from such failure by Contractor.
16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds.
Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors. d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation.
Contractor agrees to provide the City with 30 days written notice prior to any non renewal or reduction in coverage or limits.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.
17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 8 of 12
officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of December 3, 2024, Item #3
the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein.
18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective.
19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract.
20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder.
21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract.
22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.
23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances.
24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.
25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either 9 of 12
December 3, 2024, Item #3
labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California.
26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers.
Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the work.
27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City.
28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.
29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705.
30. a. Contractor shall, without disturbing the condition, notify City, in writing, as soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
i. The presence of any material that Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code:
ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications: or
iii. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person. c. City shall promptly investigate the reported conditions. If City, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in 10 of 12
December 3, 2024, Item #3
Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order.
d. In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. Contractor shall retain any and all-rights that pertain to the resolution of disputes and protests between the parties.
31. This Contract is to be governed by the laws of the State of California.
32. All work shall be guaranteed for a period of one (1) year from the date of acceptance by the City. Contractor shall promptly make all needed repairs arising out of defective materials, workmanship, and equipment.
City is hereby authorized to make such repairs if within ten (10) days after giving written notice to Contractor, or its agent, Contractor should fail to make or undertake with due diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof. (Remainder of page intentionally left blank)
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December 3, 2024, Item #3
IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written.
Clair Global Integration LLC
By: ------------
Signature
Print Name
Contractor information:
Address for Notices and Payments
Telephone Number: ______ _
Email: ------------
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
Alan Fenstermacher, City Attorney
12 of 12
CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
December 3, 2024, Item #3
AG EN DA REPORT City of Poway
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary :
December 3, 2024
Honorable Mayor and Members of the City Council
Craig Schmollinger, Director of Finance ~
Mehrnoush Jamshidi, Finance Manager
(858) 668-4426 or mjamsh [email protected]
City's Investment Report as of September 30, 2024
CITY COUNCIL
Quarterly reports of investments are required to be presented to the City Council per California Government Code and the City's Investment Policy. Attached is the Investment Portfolio Report as of September 30, 2024.
Recommended Action:
It is recommended the City Council accept and file the attached report.
Discussion:
Pursuant to California Government Code Sec. 53646{b){1) and the City's Investment Policy, the Director of Finance {i.e., City Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information .
The City is in compliance with its adopted Investment Policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of September 30, 2024, was $148,757,078. It consisted of the following :
Investment Portfolio Total
Cash $60,283
Deposits at CalTRUST $25,015,195
Deposits at the Local Agency Investment Fund {LAIF) $41,309,924 U.S. Treasury Notes $33,912,608
U.S. Instrumentalities $24,887,356
Corporate Notes $23,571,712
Fair Value of Investment Portfolio as of September 30, 2024 $148,757,078 1 of 33
December 3, 2024, Item #4
It is the City's practice to keep funds (including those identified to pay for Capital Improvement Projects) invested and earning interest until they are needed. In addition to changing market conditions, fluctuations in the fair value of the investment portfolio can also be reflective of payments for large capital projects as well as operational expenses.
The attached Investment Portfolio Report (Attachment B) and Investment Report (Attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The Portfolio Report includes all investments while the Investment Report includes only those investments managed by Insight Investment.
All City funds, including the General Fund, Water Fund, Wastewater Fund and others - except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending September 30, 2024, is estimated at
4.58% for LAIF, 4.73% for the CalTRUST short-term fund, and 4.14% for the CalTRUST medium-term fund.
For fixed income securities, the difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $81,347, 11 O; the fair value is $82,431,959 for an unrealized gain of $1,084,849 or 1.33% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation.
Also included with this report are recaps of the City's cash and investments held by fiscal agents, non managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at September 30, 2024, was $503,006. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $21,452 at September 30, 2024. The City's cash on hand at September 30, 2024 totaled $1,408,637.
The September 30, 2024 balance of the City's Library Trust Fund is $262,500. Through the Fiscal Year 2024-25 period ending September 30, 2024, no interest earnings has been transferred to the General Fund. At the close of Fiscal Year 2024-25, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating costs.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The externally managed investment portfolio earned $183,703 of interest during September 2024, as well as $188,638 of interest during August 2024, and $194,366 during July 2024. Fees for investment services during this period totaled $10,146.
Public Notification:
None.
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December 3, 2024, Item #4
Attachments:
A. Investment Statistics
B. Investment Portfolio Report prepared by Insight Investment C. Investment Report prepared by Insight Investment
D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at September 30, 2024
Reviewed/Approved By:
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved B:t
Ch~
City Manager
December 3, 2024, Item #4
City of Poway
Investment Statistics
Separately Managed Investment Pools
Fair Value:
CalTRUST Short-Term Deposits
CalTRUST Medium-Term Deposits
September
2023
$ 11,894,050
11,544,557
38,662,184
June
2024
$ 12,378,961
12,014,766
49,322,370
September
2024
12,620,874
12,394,321
41,309,924
Deposits at the Local Agency Investment Fund (LAIF)
Total Fair Value $ 62,100,791 $ 73,716,097 $ 66,325,119 Weighted Average Yield
Effective Average Duration in days
Weighted Average Maturity in days
Externally Managed Investment Pools
Fair Value:
3.82%
1 1
4.52%
1 1
4.53%
1 1
Cash $ 127,179 $ 548,599 $ 60,283
U.S. Treasury Notes
U.S. Instrumentalities
Corporate Bonds
Total Fair Value
Amortized Cost Value:
Cash
U.S. Treasury Notes
U.S. Instrumentalities
Corporate Bonds
Total Amortized Cost Value
Unrealized Gain (Loss)
Unrealized Gain (Loss) Percentage
Accrued Interest Earned
Weighted Average Yield
Effective Average Duration in years
Weighted Average Maturity in years
29,342,353
25,698,281
21,547,103
76,714,917
127,179
30,061,698
26,236,861
22,035,542
78,461,280
(1,746,363)
-2.23%
138,390
2.70%
1.75 1.91
32,531,265
23,656,692
22,968,276
79,704,832
548,599
32,869,178
23,853,451
23,148,785
80,420,012
(715,180)
-0.89%
176,854
4.02%
2.23 2.45
33,912,608
24,887,356
23,571,712
82,431,959
60,283
33,583,566
24,509,438
23,193,823
81,347,110
1,084,849
1.33%
183,703
4.17%
2.18 2.38
Total Fair Value of Portfolio Assets $ 138,815,708 $ 153,420,929 $ 148,757,078 Weighted Average Yield
Effective Average Duration in years
Weighted Average Maturity in years
Glossary of Yield Terminology
3.20%
0.97 1.06
4.26%
1.16 1.27
Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually.
Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity.
Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date.
One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions.
4.33%
1.21 1.32
Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in it, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings.
Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of33 ATTACHMENT A
December 3, 2024, Item #4
City of Poway
Monthly Investment Portfolio Report
September 30, 2024
Separately Managed Investment Pools % Return
LAIF $ 41,309,924 62% 4.58%
CalTrust - Short $ 12,620,874 19% 4.73%
CalTrust - Medium $ 12,394,321 19% 4.14%
Total Internally Managed $ 66,325,119 45%
Weighted Average Yield 4.53%
Days
Effective Average Duration - Internal 1
Weighted Average Maturity - Internal 1
Externally Managed Assets % Return
Cash $ 60,283 0% 4.00%
Treasury Securities $ 33,912,608 41% 3.82%
Instrumentality Securities $ 24,887,356 30% 4.24%
Corporate Notes $ 23,571,712 29% 4.60%
Total Externally Managed $ 82,431,959 55%
Weighted Average Yield 4.17%
Years
Effective Average Duration - External 2.18
Weighted Average Final Maturity - External 2.38
Total Portfolio Assets % Return
LAIF $
CalTrust - Short $
CalTrust - Medium $
Cash $
Treasury Securities $
Instrumentality Securities $
Corporate Notes $
Total Portfolio Assets $
Weighted Average Yield
Effective Average Duration - Total
Weighted Average Maturity - Total
Portfolio Change
Beginning Balance
Ending Balance
Assets values shown at Market
5 of33
41,309,924 28% 4.58%
12,620,874 8% 4.73%
12,394,321 8% 4.14%
60,283 0% 4.00%
33,912,608 23% 3.82%
24,887,356 17% 4.24%
23,571,712 16% 4.60%
148,757,078
4.33%
Years
1.21 1.32
Ca!Trust -
Medium, 19%
CalTrust - Short,
19%
Corporate
Securities
23%
146,209,542
148,757,078
ATTACHMENT B
Cash, 0%
LAIF, 62%
Treasury
Securities, 41 %
Instrumentality
Securities, 30%
CalTrust - Short CalTrust-
12%
Cash
0%
Securities
32%
December 3, 2024, Item #4
6 of 33 ATTACHMENT C
December 3, 2024, Item #4
" Contents 0 .....
w w
Fixed income market review 3
Activity and performance summary 4
Recap of securities held 6
Maturity distribution of securities held 7
Securities held 8
GASS 40 - Deposit and investment risk disclosure 14
Securities purchased 18
Securities sold and matured 19
Detail of return and interest received 20
Transaction report 24
Additional information 26
December 3, 2024, Item #4
FIXED INCOME MARKET REVIEW
As of September 30, 2024
co
0 ....
w w
Chart 1: The FOMC cut rates by SObp and projected a further SObp to follow in 2024
6.0 5.0
4.0 ~ 3.0
2.0 1.0
0.0 --- Fed Funds rate
- FOMC Median projection (Sep-
2024)
- FOMC Median projection (Jun-
2024)
, , , • , • Market expectations (Sep-2024)
Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28
Source: Federal Reserve, Bloomberg, Insight , September 30, 2024 Chart 2: The Fed shifts its focus to supporting the labor market 100
C: 80 0 ·.;;
2 ~ X 60
- "' C: "'O
"' C:
[ ·- 40
0 0.
E 20 ......
0 • lfrtf'• ••••••••••••
M N ~ ~ ~ 00 0 N M ~ ~ 00 0 M M ~ ~ ~ m M N ~
m m m m m m O O O O O O M M ~ ~ M M M N N N m m m m m m o o o o o o o o o o o o o o o o M M M M M M N N N N N N N N N N N N N N N N Recessions --- 3-month --- 6-month • • • • • • Mid-point (equal job gains and losses across industries)
Source: Bureau of Labor Statistics, Bloomberg, September 30, 2024
CITY OF POWAY
Economic Indicators and Monetary Policy
The FOMC cut the Fed funds rate by SObp, taking it to a range of 4.75% to 5%. The central bank made several changes to its official statement to reflect a shift in focus from inflation to the labor market. The central bank noted "progress on inflation" and declared the committee has "gained greater confidence that inflation is moving sustainably toward 2%". On the labor market, it changed its characterization of job gains as having moderated" to "slowed" and added that the committee is "strongly committed to supporting maximum employment" . The FOMC projected another SObp of further rate cuts into the end of the year and 1 OObp to follow in 2025 (Chart 1 ).
The FOMC left most of its longer-term estimates unchanged, but slightly adjusted some of its near-term projections to reflect slower growth and inflation as well as higher unemployment.
The Fed trimmed its year-end PCE inflation outlook from 2.6% to 2.3% and its core inflation projection from 2.8% to 2.6%. It raised its near-team unemployment rate projection from 4% to
4.4% for end-2024.
Including food and energy, CPI fell from 2.9% to 2.5% and PCE fell from 2.5% to 2.2%. Both reached the closest levels to the Fed's 2% target since early 2021. Core CPI remained at 3.2% and Core PCE rose slightly from 2.6% to 2.7%.
The US economy added 142,000 jobs in August, below the 165,000 expected, and up from a downwardly revised 89,000 in July. Besides the pandemic, it was the weakest three months of private sector hiring since 2012. The unemployment rate fell slightly from 4.3% to 4.2%. Wage growth rose from 3.6% to 3.8%.
The third release of Q2 GDP was unchanged at 3% but with marginally softer domestic demand.
Annual revisions to the five years from Ql-2019 to Ql -2023 showed notably higher post pandemic growth in 2021 (up from 5.8% to 6.1%). 2022 (up from 1.9% to 2.5%), and 2023 (up from 2.5% to 2.9%).
Interest Rate Summary
Yields generally fell during the month and the 2-year to 10-year part of the curve dis-inverted for the first time since July 2022. At the end of September, the 3-month US Treasury bill yielded
4.62%, the 6-month US Treasury bill yielded 4.40%, the 2-year US Treasury note yielded 3.64%, the 5-year us Treasury note yielded 3.56% and the 10-year US Treasury note yielded 3.78%. 3 December 3, 2024, Item #4
ACTIVITY AND PERFORMANCE SUMMARY
For the period September 1, 2024 - September 30, 2024
\D
0 :; I Amortized Cost Basis Activity Summary
w Opening balance
Income received
Total receipts
Total disbursements
lnterportfolio transfers
Total lnterportfollo transfers
Realized gain (loss)
Change in accruals from security movement
Total amortization expense
Total 01D/MKT accretion Income
Return of capital
Closing balance
Ending fair value
Unrealized gain (loss)
340,195.34
0.00 Comparative Rates of Return 1%)
*Twelve * Six
month trailing month trailing
Fed Funds
Overnight Repo
Merrill Lynch 3m US Treas Bill
Merrill Lynch 6m US Treas Bill
ML 1 Year US Treasury Note
ML 2 Year US Treasury Note
ML 5 Year US Treasury Note
* rates reflected are cumulative
5.31 5.38
5.23 5.10
4.92 4.53
4.19 2.60
2.65 2.55
2.47 2.35
2.18 2.03
80,917,490.12
340,195.34
0.00 0.00
0.00 0.00
(5,322.65)
94,747.01
0.00 81,347,109.82
82,431,959 .37
1,084,849.55
* One month
0.41 0.42
0.38 0.36
0.33 0.29
0.28 Detail Qf Amortized CQst Basis Return
Interest Accretion Realized
earned (amortization) gain (loss)
Cash and Cash Equivalents 1,068.72 0.00 0.00
Corporate Bonds 70,661.80 15,012.72 0.00
Government Agencies 57,271.37 27,314.09 0.00
Government Bonds 54,700.76 47,097.55 0.00
Total 183,702.65 89,424.36 0.00
Summary of Amortized CQst Basis Return for the Period
Interest earned
Accretion (amortization)
Realized gain (loss) on sales
Total income on portfolio
Average daily amortized cost
Period return(%)
YTD return (%)
Weighted average final maturity in days
CITY OF POWAY
Total
income
1,068.72
85,674.52
84,585.46
101,798.31
273,127.01
Total portfolio
183,702.65
89,424.36
0.00 273,127.01
81,168,401.12
0.33 2.93
869
4 December 3, 2024, Item #4
ACTIVITY AND PERFORMANCE SUMMARY
For the period September 1, 2024 - September 30, 2024 ..... 0 ~ I Fair Value Basis Activity Summary
w Opening balance 81,565,373.73
Income received
Total receipts
Total disbursements
lnterportfolio transfers
Total lnterportfollo transfers
Unrealized gain (loss) on security movements
Change in accruals from security movement
Return of capital
Change in fair value for the period
Ending fair value
340,195.34
0.00 Comparative Rates Qf Return 1%1
Fed Funds
Overnight Repo
ICE Bofa 3 Months UST-BILL
ICE Bofa 6m US Treas Bill
ICE Bofa 1 Yr US Treasury Note
ICE BofAUS Treasury 1-3
ICE BofA US Treasury 1-5
* rates reflected are cumulative
*Twelve
month trailing
5.31 5.38
5.46 5.73
5.87 6.74
7.44 * Six
month trailing
2.60 2.65
2.71 2.90
3.16 3.84
4.23 340,195.34
0.00 0.00
0.00 0.00
0.00 526,390.30
82,431 ,959.37
* One month
0.41 0.42
0.43 0.52
0.66 0.80
0.88 Detail Qf Fair Value Basis Retur □
Interest Change in
earned fair value
Cash and Cash Equivalents 1,068.72 0.00
Corporate Bonds 70,661.80 162,972.45
Government Agencies 57,271.37 155,433.59
Government Bonds 54,700.76 207,984.26
Total 183,702.65 526,390.30
Summary Qf Fair Value Basis Return for the PeriQd
Interest earned
Change in fair value
Total income on portfolio
Average daily total value *
Period return (%)
YTD return (%)
Weighted average final maturity in days
* Total value equals market value and accrued interest
CITY OF POWAY
Total
income
1,068.72
233,634.25
212,704.96
262,685.02
710,092 .95
Total portfolio
183,702.65
526,390.30
710,092.95
82,810,708.25
0.86 4.46
869
5 December 3, 2024, Item #4
RECAP OF SECURITIES HELD
As of September 30, 2024 .... ....
0 ....
w w
Cash and Cash Equivalents
Corporate Bonds
Government Agencies
Government Bonds
~.J~"
Historical
cost
60,283.08
Amortized
cost
60,283.08
Fair value
60,283.08
22,944,931.00 23,193,822 .68 23,571,712.41
24,113,261 .59 24,509,438.23 24,887,355.78
32,721,230 .72 33,583,565 .83 33,912,608.10
Unrealized
gain (loss)
0.00 377,889.73
377,917 .55
329,042 .27
Weighted Percent
average of
final portfolio
maturity (days)
944
904
793
0.08 28.74
30.20 40.98
Portfolio diversification {%)
■ Cash and Cash Equivalents
■ Corporate Bonds
■ GovernmentAgencies
■ Government Bonds
Total
0.08 28.74
30.20 40.98
100.00
Weighted
average
effective
duration (years)
0.00 2.25
2.31 2.04
CITY OF POWAY
6 December 3, 2024, Item #4
MATURITY DISTRIBUTION OF SECURITIES HELD
As of September 30, 2024 .....
N
0 ....
w w
Maturity
Under 90 days
90 to 1 79 days
180 days to 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
Over 5 years
25.00 E 20.00
.§.
~ 15.00
u
"' -~ 10.00
E "' :i: 5.00
0.00 -01>1
Oj~
"b<t;,
,:f' s::,'-0
qJ
Maturity distribution
~
"---~rz,'l>
,o
-01>1
.::o.i
-o1f-"'
,'h~
'l>{o
~rz,
'l,
"'o
rb"'
~rz,
~
'l,'-0
rb"
~rz,
~
~,o
Historic cost Percent
1 , 192,298.48 1.49
2,049,503 .98 2.57
9,796,685.44 12.27
17,951 ,185.50 22.48
21,650,432.86 27.12
19,757,015.99 24.75
7,442,584.14 9.32
0.00 0.00
79,839,706.39 100.00
rb"
'-J~rz,
~,o
rb"
~rz,
1-.'-J
o~rz,
CITY OF POWAY
7 December 3, 2024, Item #4
SECURITIES HELD
CITY OF POWAY
As of September 30, 2024 ... w
g,cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port
w (loss) interest cost
Cash and Cash Equivalents
Cash and Cash Equivalents 0.000 60,283.08 60,283.08 60,283.08 60,283.08 0.00 0.00 0.08 ---- - - - -
Total Cash and Cash Equivalents 60,283.08 60,283.08 60,283.08 60,283.08 0.00 0.00 0.08 Corporate Bonds
166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 1 .554 05/11/2025 1,800,000 .00 1,715,436.00 1,782,727.69 1,768,582.40 (14,145.29) 10,800.30 2.15 11APR25) 04/11/2025
24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11 SEP2025 3.400 09/11/2025 1,000,000.00 989,920.00 996,855.19 992,574.11 (4,281.08) 1,794.44 1.24 02665WEY3 AMERICAN HONDA FINANCE 4.95% 09JAN2026 4.950 01/09/2026 1,000,000.00 995,500.00 996,285.07 1,009,086.67 12,801.60 11,137.50 1.25 037833EB2 APPLE INC 0.7% 08FEB2026 (CALLABLE 08JAN26) 0.700 02/08/2026 1,200,000.00 1,096,152.00 1,149,423.33 1, 1S0,391.60 968.27 1,213.33 1.37 01/08/2026
06051GFX2 BANK OF AMERICA CORP 3.5% 19APR2026 3.500 04/19/2026 1,800,000.00 1,736,028.00 1,765,448.94 1,782,389.16 16,940 .22 28,175.00 2.17 91159HHN3 US BANCORP 2.375% 22JUL2026 (CALLABLE 22JUN26) 2.375 07/22/2026 1,000,000 .00 944,140.00 959,169 .60 972,890 .12 13,720.52 4,486.11 1.18 06/22/2026
02665WBH3 AMERICAN HONDA FINANCE 2.3% 09SEP2026 2.300 09/09/2026 1,100,000.00 1,034,869.00 1,063, 136.38 1,064,899.42 1,763 .04 1,475.83 1.30 17325FBC1 CITIBANK NA 5.488% 04DEC2026 (CALLABLE 04NOV26) 5.488 12/04/2026 1,400,000 .00 1,420, 132.00 1,415,088.99 1,440,392 .10 25,303.11 24,756 .98 1.78 11/04/2026
17275RBQ4 CISCO SYSTEMS INC 4.8% 26FEB2027 (CALLABLE 4.800 02/26/2027 1,250,000.00 1,253,775.00 1,253,087.96 1,277,355.74 24,267.78 5,666.67 1.57 26JAN27) 01/26/2027
037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 2. 900 09/12/2027 1,300,000 .00 1,234,987 .00 1,259,000 .12 1,270,822.40 11,822 .28 1,885.00 1.55 06/12/2027
-- -·---- --- ---- --- - ----- - --- -- -------- --~·- -------- - 8 December 3, 2024, Item #4
SECURITIES HELD
CITY OF POWAY
As of September 30, 2024 ..... .,:,.
Sfusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port
w (loss) interest cost
Corporate Bonds
24422EWK1 JOHN DEERE CAPITAL CORP 4.15% 15SEP2027 4.150 09/15/2027 1,000,000.00 992,020.00 994,962 .24 1,007,463.49 12,501 .25 1,729.17 1.24 89236TKQ7 TOYOTA MOTOR CREDIT CORP 4.625% 12JAN2028 4.625 01/12/2028 1,100,000.00 1,091,585.00 1,094,293.44 1,120,359.36 26,065.92 11,022.92 1.37 46625HRY8 JPMORGAN CHASE & CO 3.782% 01FEB2028 (CALLABLE 3.782 02/01/2028 2,000,000.00 1,909,600 .00 1,927,764.20 1,978,164.18 50,399.98 12,396.56 2.39 01 FEB27) 02/01/2027
194162AR4 COLGATE-PALMOLIVE CO 4.6% 01 MAR2028 (CALLABLE 4.600 03/01/2028 2,400,000.00 2,391,240.00 2,394,012.46 2,462,649.89 68,637.43 8,893 .33 3.00 01FEB28) 02/01/2028
91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 4.548 07/22/2028 900,000.00 890,253.00 891,704 .17 907,096 .92 15,392.75 7,731.60 1.12 07/22/2027
17325FBB3 CITIBANK NA 5.803% 29SEP2028 (CALLABLE 29AUG28) 5.803 09/29/2028 1,000,000.00 1,027,800.00 1,022,987.21 1,058,570.62 35,583.41 161.19 1.29 08/29/2028
17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 4.850 02/26/2029 1,000,000.00 999,390.00 999,440 .13 1,034,183.22 34,743.09 4,580.56 1.25 26JAN29) 01/26/2029
717081ET6 PFIZER INC 3.45% 15MAR2029 (CALLABLE 15DEC28) 3.450 03/15/2029 1,300,000.00 1,222,104. 00 1,228,435.56 1,273,841 .01 45,405.45 1,868.75 1.53 12/15/2028
Total Corporate Bonds 23,550,000.00 22,944,931.00 23,193,822.68 23,571,712.41 377,889.73 139,775.24 28.74 Government Agencies
3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 0.500 02/10/2025 1,000,000 .00 1,002,860 .00 1,000,000.00 983,973 .1 5 (16,026.85) 694.44 1.26 (CALLABLE 1 ONOV24) 11/10/2024
3136G4K85 FANNIE MAE 0.5% 18AUG2025 CALLABLE #0000 0.500 08/18/2025 1,350,000.00 1,266,394.50 1,300,119.05 1,308,988.05 8,869.00 787.50 1.59 3134A2HG6 FREDDIE MAC 0% 11 DEC2025 0.000 12/11/2025 1,000,000.00 895,930.00 948,223 .06 953,914 .35 5,691 .29 0.00 1.12 9 December 3, 2024, Item #4
SECURITIES HELD
CITY OF POWAY
As of September 30, 2024 ...
u,
g=usip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port w (loss) interest cost Government Agencies
3130ALHHO FEDERAL HOME LOAN BANK 0. 96% 05MAR2026 0.960 03/05/2026 2,300,000 .00 2,092,540 .00 2,192,729.02 2,204,904 .91 12,175.89 1,533.33 2.62 (CALLABLE 05NOV24) 10/05/2024
3130AWLZ1 FEDERAL HOME LOAN BANK 4.75% 12JUN2026 4.750 06/12/2026 1,100,000 .00 1,096,612.00 1,097,920.30 1,118,214.70 20,294.40 15,675.00 1.37 3133EPUW3 FEDERAL FARM CREDITBANK 4.75% 01 SEP2026 4.750 09/01/2026 2,000,000.00 1,987,080.00 1,991,382.51 2,040,446.48 49,063.97 7,652 .78 2.49 3130APJH9 FEDERAL HOME LOAN BANK 1.25% 280CT2026 1.250 10/28/2026 2,050,000.00 1,860,110 .55 1,945,714.16 1,969,526 .78 23,812.62 10,819.44 2.33 (CALLABLE 280CT24) #0006 10/28/2024
3133EPK79 FEDERAL FARM CREDIT BANK 4.375% 07DEC2026 4.375 12/07/2026 1,200,000.00 1,196,508 .00 1,197,464.76 1,216,934 .16 19,469.40 16,479 .17 1.50 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 1.250 12/21/2026 2,300,000.00 2,055,763 .00 2,166,278.99 2,180,918.60 14,639 .61 7,906 .25 2.57 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027 4 .125 09/10/2027 2,000,000.00 1,993,260.00 1,995,963.62 2,029,539 .56 33,575.94 4,583.33 2.50 3133EPCG8 FEDERAL FARM CREDIT BANK 4.125% 01 DEC2027 4.125 12/01/2027 1,000,000.00 989,640.00 993,067 .00 1,015,491 .17 22,424 .17 13 ,635.42 1.24 3130ATUS4 FEDERAL HOME LOAN BANK 4.25% 1 ODEC2027 4.250 12/10/2027 2,000,000 .00 2,010,731 .16 2,007,108.78 2,039,445.00 32,336.22 25,972 .22 2.52 3133EN5N6 FEDERAL FARM CREDIT BANK 4% 06JAN2028 4.000 01/06/2028 1,100,000.00 1,105,292.88 1,103,514 .64 1,112,374 .92 8,860.28 10,266 .67 1.38 3130AEB25 FEDERAL HOME LOAN BANK 3.25% 09JUN2028 3.250 06/09/2028 2,700,000 .00 2,574,679 .50 2,582,627 .95 2,669,953.67 87,325.72 27,056 .25 3.22 10 December 3, 2024, Item #4
SECURITIES HELD
CITY OF POWAY
As of September 30, 2024 .....
C'
$=USip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port w (loss) interest cost Government Agencies
3133EP5U5 FEDERAL FARM CREDIT BANK 4.125% 20MAR2029 4.125 03/20/2029 2,000,000 .00 1,985,860. 00 1,987,324.39 2,042,730. 28 55,405.89 2,291.67 2.49 Total Government Agencies 25,100,000 .00 24,113,261.59 24,509,438.23 24,887,355.78 377,917.55 145,353.47 30.20 Government Bonds
912828YM6 USA TREASURY 1.5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1,100,879.86 1,096,946.41 (3,933.45) 6,860.05 1.42 912828YYO USA TREASURY 1. 75% 31 DEC2024 1.750 12/31/2024 1,000,000. 00 1,046,643.98 1,003,298.42 992,812.50 (10,485.92) 4,375.00 1.31 912828ZL7 USA TREASURY 0.375% 30APR2025 0.375 04/30/2025 2,900,000.00 2,704,703.13 2,863,000.06 2,834,953 .90 (28,046.16) 4,521.40 3.39 912828XZ8 USA TREASURY 2.75% 30JUN2025 2.750 06/30/2025 1,500,000 .00 1,445,449.22 1,480,037.05 1,485,556.64 5,519.59 10,312.50 1.81 91282CEY3 USA TREASURY 3% 15JUL2025 3.000 07/15/2025 400,000.00 395,532.59 395,902.50 396,743.75 841.25 2,510.87 0.50 91282CAJO USA TREASURY 0.25% 31 AUG2025 0.250 08/31/2025 1,400,000.00 1,279,250.00 1,365,277 .90 1,352,575.00 (12,702.90) 290.06 1.60 91282CAT8 USA TREASURY 0.25% 31 OCT2025 0.250 10/31/2025 1,200,000.00 1,086,046.88 1,161,065 .20 1,153,546.87 (7,518.33) 1,247.28 1.36 9128285N6 USA TREASURY 2.875% 30NOV2025 2.875 11/30/2025 1,700,000. 00 1,636,454. 91 1,663,119.61 1,680,542.97 17,423.36 16,291.67 2.05 91282CBC4 USA TREASURY 0.375% 31 DEC2025 0.375 12/31/2025 2,300,000.00 2,106,124.89 2,228,948.74 2,203,597.66 (25,351.08) 2,156.25 2.64 91282CBT7 USA TREASURY 0. 75% 31 MAR2026 0.750 03/31/2026 1,400,000.00 1,243,707. 82 1,333,209 .51 1,338,914. 07 5,704.56 0.00 1.56 -·- --·----·- - - ----- -- ---- ~- -
11 December 3, 2024, Item #4
SECURITIES HELD
CITY OF POWAY
As of September 30, 2024 ...
" ~usip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port w (loss) interest cost Government Bonds
912828YU8 USA TREASURY 1.625% 30NOV2026 1.625 11/30/2026 1,600,000.00 1,468,130 .36 1,505,087.46 1,533,500.00 28,412 .54 8,666.67 1.84 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 1 .250 1 2/3112026 2,350,000.00 2,088,287 .11 2,209,024 .90 2,231,490 .23 22,465.33 7,343.75 2.62 91282CEF4 USA TREASURY 2.5% 31 MAR2027 2.500 03/31/2027 1,000,000. 00 924,573 .66 946,047.98 974,296.88 28,248 .90 0.00 1.16 91282CET4 USA TREASURY 2.625% 31 MAY2027 2.625 05/31/2027 2,000,000.00 1,901,256 .70 1,920,662.90 1,951,250.00 30,587 .10 17,500.00 2.38 91282CEW7 USA TREASURY 3.25% 30JUN2027 3.250 06/30/2027 740,000.00 699,620.45 710,350.89 733,756.25 23,405.36 6,012.50 0.88 91282CFB2 USA TREASURY 2. 75% 31 JUL2027 2.750 07/31/2027 1,800,000. 00 1,671,756. 03 1,703,420.05 1,759,851 .56 56,431.51 8,205 .16 2.09 91282CFUO USA TREASURY 4.125% 31 OCT2027 4.125 10/31/2027 2,100,000.00 2,077,858.60 2,083,640.93 2,133,222.65 49,581 .72 36,015.29 2.60 9128283F5 USA TREASURY 2.25% 15NOV2027 2.250 11/15/2027 1,100,000.00 1,030,523.22 1,055,910.45 1,057,074.22 1,163.77 9,281.25 1.29 91282CHE4 USA TREASURY 3.625% 31 MAY2028 3.625 05/31/2028 2,100,000.00 2,074,577 .35 2,078,684.45 2,103,281.25 24,596.80 25,375 .00 2.60 91282CCH2 USA TREASURY 1.25% 30JUN2028 1.250 06/30/2028 1,700,000. 00 1,473,488.28 1,527,725.25 1,562,007.80 34,282.55 5,312.50 1.85 9128285M8 USA TREASURY 3.125% 15NOV2028 3.125 11/15/2028 2,200,000.00 2,059,929 .24 2,072,915.93 2,161,671.86 88,755.93 25,781.25 2.58 12 December 3, 2024, Item #4
SECURITIES HELD
As of September 30, 2024 .....
00 s;:usip Description
w w
Government Bonds
91282CFJ5 USA TREASURY 3.125% 31 AUG2029
Total Government Bonds
Coupon Maturity/ Par value or Historical cost
Call date shares
3.125 08/31/2029 1,200,000.00 1,175,300.90
34,790,000.00 32,721,230.72
CITY OF POWAY
Amortized cost Fair value Unrealized Total %
gain accrued Port
(loss) interest cost
1,175,355.79 1,175,015.63 (340.16) 3,107.74 1.47
-33,583,565.83 33,912,608.10 329,042.27 201,166.19 40.98 Grand total 83,500,283.08 79,839,706.39 81,347,109.82 82,431,959.37 1,084,849.55 486,294.90 100.00. 13 December 3, 2024, Item #4
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of September 30, 2024
~
ID
s;=usip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mkt value dur (yrs) w United States Treasury Note/Bond
912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1,100,000.00 1,132,015.40 1.42 1,096,946.41 1.33 0.08 912828YYO USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000 .00 1,046,643.98 1.31 992,812.50 1.20 0.25 912828ZL7 USA TREASURY 0.375% 0.375 04/30/2025 AA+ Aaa 2,900,000.00 2,704,703.13 3.39 2,834,953.90 3.44 0.57 912828XZ8 USA TREASURY 2.75% 2.750 06/30/2025 AA+ Aaa 1,500,000.00 1,445,449.22 1.81 1,485,556.64 1.80 0.73 91282CEY3 USA TREASURY 3% 3.000 07/15/2025 AA+ Aaa 400,000.00 395,532.59 0.50 396,743.75 0.48 0.77 91282CAJO USA TREASURY 0.25% 0.250 08/31/2025 AA+ Aaa 1,400,000.00 1,279,250.00 1.60 1,352,575.00 1.64 0.90 91282CAT8 USA TREASURY 0.25% 0.250 10/31/2025 AA+ Aaa 1,200,000.00 1,086,046.88 1.36 1, 153,546.87 1.40 1.06 9128285N6 USA TREASURY 2.875% 2.875 11/30/2025 AA+ Aaa 1,700,000.00 1,636,454.91 2.05 1,680,542.97 2.04 1.12 91282CBC4 USA TREASURY 0.375% 0.375 12/31/2025 AA+ Aaa 2,300,000.00 2,106,124.89 2.64 2,203,597.66 2.67 1.22 91282CBT7 USA TREASURY 0.75% 0.750 03/31/2026 AA+ Aaa 1,400,000.00 1,243,707.82 1.56 1,338,914.07 1.62 1.46 912828YU8 USA TREASURY 1.625% 1.625 11/30/2026 AA+ Aaa 1,600,000.00 1,468, 130.36 1.84 1,533,500.00 1.86 2.08 91282CDQ1 USA TREASURY 1.25% 1.250 12/31/2026 AA+ Aaa 2,350,000.00 2,088,287.11 2.62 2,231,490.23 2.71 2.17 91282CEF4 USA TREASURY 2.5% 2.500 03/31/2027 AA+ Aaa 1,000,000.00 924,573.66 1.16 974,296.88 1.18 2.39 91282CET4 USA TREASURY 2.625% 2.625 05/31/2027 AA+ Aaa 2,000,000.00 1,901,256.70 2.38 1,951,250.00 2.37 2.52 91282CEW7 USA TREASURY 3.25% 3.250 06/30/2027 AA+ Aaa 740,000.00 699,620.45 0.88 733,756.25 0.89 2.58 91282CFB2 USA TREASURY 2.75% 2.750 07/31/2027 AA+ Aaa 1,800,000.00 1,671,756.03 2.09 1,759,851.56 2.13 2.68 91282CFUO USA TREASURY 4.125% 4.125 10/31/2027 AA+ Aaa 2,100,000.00 2,077,858.60 2.60 2,133,222.65 2.59 2.82 9128283F5 USA TREASURY 2.25% 2.250 11/15/2027 AA+ Aaa 1,100,000.00 1,030,523.22 1.29 1,057,074.22 1.28 2.95 91282CHE4 USA TREASURY 3.625% 3.625 05/31/2028 AA+ Aaa 2,100,000.00 2,074,577.35 2.60 2,103,281.25 2.55 3.36 91282CCH2 USA TREASURY 1.25% 1.250 06/30/2028 AA+ Aaa 1,700,000.00 1,473,488.28 1.85 1,562,007.80 1.89 3.58 9128285MB USA TREASURY 3.125% 3.125 11/15/2028 AA+ Aaa 2,200,000.00 2,059,929.24 2.58 2,161,671.86 2.62 3.78 91282CFJ5 USA TREASURY 3.125% 3.125 08/31/2029 AA+ Aaa 1,200,000.00 1,175,300.90 1.47 1,175,015.63 1.43 4.49 Issuer total 34,790,000.00 32,721,230.72 40.98 33,912,608.10 41.14 2.04 14 December 3, 2024, Item #4
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of September 30, 2024
N
0 s;:usip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mktvalue dur (yrs) w Federal Home Loan Banks
3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 11/10/2024 AA+ Aaa 1,000,000.00 1,002,860.00 1.26 983,973.15 1.19 0.36 3130ALHHO FEDERAL HOME LOAN 0.960 03/05/2026 10/05/2024 AA+ Aaa 2,300,000 .00 2,092,540 .00 2.62 2,204,904.91 2.67 1.37 3130AWLZ1 FEDERAL HOME LOAN 4.750 06/12/2026 AA+ Aaa 1,100,000.00 1,096,612.00 1.37 1,118,214.70 1.36 1.60 3130AP JH9 FEDERAL HOME LOAN 1.250 10/28/2026 10/28/2024 AA+ Aaa 2,050,000.00 1,860,110.55 2.33 1,969,526.78 2.39 2.00 3130AQF65 FEDERAL HOME LOAN 1.250 12/21/2026 AA+ Aaa 2,300,000.00 2,055,763.00 2.57 2,180,918.60 2.65 2.15 3130ATHWO FEDERAL HOME LOAN 4.125 09/10/2027 AA+ Aaa 2,000,000.00 1,993,260.00 2.50 2,029,539.56 2.46 2.74 3130ATU54 FEDERAL HOME LOAN 4.250 12/10/2027 AA+ Aaa 2,000,000.00 2,010,731.16 2.52 2,039,445.00 2.47 2.92 3130AEB25 FEDERAL HOME LOAN 3.250 06/09/2028 AA+ Aaa 2,700,000.00 2,574,679.50 3.22 2,669,953.67 3.24 3.40 Issuer total 15,450,000.00 14,686,556.21 18.40 15,196,476.37 18.44 2.26 Federal Farm Credit Banks Funding Corp
3133EPUW3 FEDERAL FARM CREDIT 4.750 09/01/2026 AA+ Aaa 2,000,000.00 1,987,080.00 2.49 2,040,446.48 2.48 1.81 3133EPK79 FEDERAL FARM CREDIT 4.375 12/07/2026 AA+ Aaa 1,200,000.00 1,196,508.00 1.50 1,216,934.16 1.48 2.04 3133EPCG8 FEDERAL FARM CREDIT 4.125 12/01/2027 AA+ Aaa 1,000,000.00 989,640.00 1.24 1,015,491.17 1.23 2.91 3133ENSN6 FEDERAL FARM CREDIT 4.000 01/06/2028 AA+ Aaa 1,100,000.00 1,105,292.88 1.38 1,112,374.92 1.35 3.01 3133EPSU5 FEDERAL FARM CREDIT 4.125 03/20/2029 AA+ Aaa 2,000,000.00 1,985,860.00 2.49 2,042,730.28 2.48 4.04 Issuer total 7,300,000.00 7,264,380.88 9.10 7,427,977.01 9.01 2.79 Citibank NA
17325FBC1 CITIBANK NA 5.488% 5.488 12/04/2026 11/04/2026 A+ Aa3 1,400,000.00 1,420,132.00 1.78 1,440,392.10 1.75 1.95 17325FBB3 CITIBANK NA 5.803% 5.803 09/29/2028 08/29/2028 A+ Aa3 1,000,000.00 1,027,800.00 1.29 1,058,570.62 1.28 3.50 Issuer total 2,400,000.00 2,447,932.00 3.07 2,498,962.72 3.03 2.60 Colgate-Palmolive Co
194162AR4 COLGATE-PALMOLIVE CO 4.600 03/01/2028 02/01/2028 A+ Aa3 2,400,000.00 2,391,240.00 3.00 2,462,649.89 2.99 3.08 Issuer total 2,400,000.00 2,391,240.00 3.00 2,462,649.89 2.99 3.08 -- ·-- --- ·- ~-- -
15 December 3, 2024, Item #4
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of September 30, 2024
N ....
~usip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mktvalue dur (yrs) w Apple Inc
037833EB2 APPLE INC 0.7% 0.700 02/08/2026 01/08/2026 AA+ Aaa 1,200,000.00 1,096,152.00 1.37 1,150,391.60 1.40 1.32 037833D83 APPLE INC 2.9% 2.900 09/12/2027 06/12/2027 AA+ Aaa 1,300,000 .00 1,234,987.00 1.55 1,270,822.40 1.54 2.70 Issuer total 2,500,000.00 2,331,139.00 2.92 2,421,214.00 2.94 2.05 Cisco Systems Inc
17275RBQ4 CISCO SYSTEMS INC 4.8% 4.800 02/26/2027 01/26/2027 AA- A1 1,250,000.00 1,253,775.00 1.57 1,277,355.74 1.55 2.19 17275RBR2 CISCO SYSTEMS INC 4.850 02/26/2029 01/26/2029 AA- A1 1,000,000.00 999,390.00 1.25 1,034,183.22 1.25 3.88 Issuer total 2,250,000 .00 2,253,165.00 2.82 2,311,538.96 2.80 2.94 American Honda Finance Corp
02665WEY3 AMERICAN HONDA 4.950 01/09/2026 A- A3 1,000,000.00 995,500.00 1.25 1,009,086.67 1.22 1.21 02665WBH3 AMERICAN HONDA 2.300 09/09/2026 A- A3 1,100,000.00 1,034,869.00 1.30 1,064,899.42 1.29 1.86 Issuer total 2,100,000.00 2,030,369.00 2.54 2,073,986.09 2.52 1.54 John Deere Capital Corp
24422ETC3 JOHN DEERE CAPITAL 3.400 09/11/2025 A A1 1,000,000.00 989,920.00 1.24 992,574.11 1.20 0.93 24422EWK1 JOHN DEERE CAPITAL 4.150 09/15/2027 A A1 1,000,000.00 992,020.00 1.24 1,007,463.49 1.22 2.75 Issuer total 2,000,000.00 1,981,940.00 2.48 2,000,037.60 2.43 1.84 JPMorgan Chase & Co
46625HRY8 JPMORGAN CHASE & CO 3.782 02/01/2028 02/01/2027 A- A1 2,000,000.00 1,909,600.00 2.39 1,978,164.18 2.40 2.19 Issuer total 2,000,000.00 1,909,600.00 2.39 1,978,164.18 2.40 2.19 US Bancorp
91159HHN3 US BANCORP 2.375% 2.375 07/22/2026 06/22/2026 A A3 1,000,000.00 944,140.00 1.18 972,890.12 1.18 1.72 91159HJF8 US BANCORP 4.548% 4.548 07/22/2028 07/22/2027 A A3 900,000.00 890,253.00 1.12 907,096.92 1.10 2.58 Issuer total 1,900,000.00 1,834,393.00 2.30 1,879,987.04 2.28 2.14 - ---·-- - -- ·--·-- · -·- -· ------- ·- ·-- -------
16 December 3, 2024, Item #4
GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of September 30, 2024
"' "' s;:usip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares cost hist cost value mktvalue dur (yrs) w Bank of America Corp
06051 GFX2 BANK OF AMERICA CORP 3.500 04/19/2026 A- A1 1,800,000.00 1,736,028.00 2.17 1,782,389.16 2.16 1.46 Issuer total 1,800,000.00 1,736,028.00 2.17 1,782,389.16 2.16 1.46 Chevron Corp
166764BW9 CHEVRON CORP 1.554% 1.554 05/11/2025 04/11/2025 AA- Aa2 1,800,000.00 1,715,436.00 2.15 1,768,582.40 2.15 0.60 Issuer total 1,800,000 .00 1,715,436.00 2.15 1,768,582.40 2.15 0.60 Federal National Mortgage Association
3136G4K85 FANNIE MAE 0.5% 0.500 08/18/2025 AA+ Aaa 1,350,000.00 1,266,394.50 1.59 1,308,988.05 1.59 0.86 Issuer total 1,350,000.00 1,266,394.50 1.59 1,308,988.05 1.59 0.86 Pfizer Inc
717081 ET6 PFIZER INC 3.45% 3.450 03/15/2029 12/15/2028 A A2 1,300,000.00 1,222,104.00 1.53 1,273,841.01 1.55 3.98 Issuer total 1,300,000.00 1,222,104.00 1.53 1,273,841.01 1.55 3.98 Toyota Motor Credit Corp
89236TKQ7 TOYOTA MOTOR CREDIT 4.625 01/12/2028 A+ A1 1,100,000.00 1,091,585.00 1.37 1,120,359.36 1.36 2.99 Issuer total 1,100,000 .00 1,091,585.00 1.37 1,120,359.36 1.36 2.99 Federal Home Loan Mortgage Corp
3134A2HG6 FREDDIE MAC 0% 0.000 12/11/2025 AA+ Aaa 1,000,000.00 895,930.00 1.12 953,914.35 1.16 1.17 Issuer total 1,000,000.00 895,930.00 1.12 953,914.35 1.16 1.17 Cash and Cash Equivalents
CASH 0.000 60,283.08 60,283.08 0.00 60,283.08 0.07 0.00 Issuer total 60,283.08 60,283.08 0.00 60,283.08 0.07 0.00 at.ml ---
17 December 3, 2024, Item #4
SECURITIES PURCHASED
For the period September 1, 2024 - September 30, 2024
N w
~usip Description / Broker Trade date Coupon Maturity/
w Settle date Call date w
Government Bonds
91282CEY3
91282CFJ5
USA TREASURY 3% 15JUL2025
MORGAN STANLEY AND CO., LLC
USA TREASURY 3. 125% 31 AUG2029
J.P. MORGAN SECURITIES LLC
09/04/2024
09/05/2024
09/26/2024
09/30/2024
3.000
3.125
07/15/2025
08/31/2029
Par value or
shares
400,000.00
1,200,000.00
Unit cost
98.88 97.94
Principal
cost
(395,532.59)
(1 ,175,300.90)
CITY OF POWAY
Accrued
interest
(1 ,695.65)
(3,107.73)
18 December 3, 2024, Item #4
SECURITIES SOLD AND MATURED
CITY OF POWAY
For the period September 1, 2024 - September 30, 2024
N :,.
~usip Description / Broker Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued I.I.I Settle date Call date shares at sale or sale or gain interest I.I.I maturity maturity (loss) sold Government Bonds
912828YH7 USA TREASURY 1.5% 30SEP2024 09/30/2024 1.500 (1,000,000.00) 1,032,304.69 1,000,000.00 0.00 1,000,000.00 0.00 0.00 09/30/2024
- - --- -Total (Government Bonds) (1,000,000.00) 1 ,032,304.69 1 ,000,000.00 1,000,000.00 0.00 0.00 - -·- - ----- ----
19 December 3, 2024, Item #4
DETAIL OF RETURN AND INTEREST RECEIVED
CITY OF POWAY
For the period September 1, 2024 - September 30, 2024
l'J u,
s;:usip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value
w
--
Cash
Cash and Cash Equivalents 0.00 0.00 0.00 1,068.72 1,068.72 -- --
Total Cash 0.00 0.00 0.00 1,068.72 1,068.72
--
Corporate Bonds
02665WBH3 AMERICAN HONDA FINANCE 2.3% 09SEP2026 1,582.13 0.00 8,290.91 2,038.05 12,650.00 02665WEY3 AMERICAN HONDA FINANCE 4.95% 09JAN2026 242.80 0.00 3,733.06 3,987.50 0.00 037833EB2 APPLE INC 0.7% 08FEB2026 (CALLABLE 08JAN26) 3,109.22 0.00 8,562.31 676.66 0.00 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 1,158.19 0.00 11,585.23 3,036.94 18,850.00 06051GFX2 BANK OF AMERICA CORP 3.5% 19APR2026 1,854.26 0.00 10,499.26 5,075.00 0.00 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 11 APR25) 2,344.66 0.00 8,863.47 2,253.30 0.00 17275RBQ4 CISCO SYSTEMS INC 4.8% 26FEB2027 (CALLABLE 26JAN27) (110.82) 0.00 7,103.40 4,833.34 0.00 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 10.59 0.00 6,819.77 3,906.95 0.00 17325FBC1 CITIBANK NA 5.488% 04DEC2026 (CALLABLE 04NOV26) (600.36) 0.00 8,765.39 6,189.25 0.00 17325FBB3 CITIBANK NA 5.803% 29SEP2028 (CALLABLE 29AUG28) (489.43) 0.00 9,111.61 4,674.63 29,015.00 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01 MAR2028 (CALLABLE 01 FEB28) 145.92 0.00 19,661.21 8,893.33 55,200.00 24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11SEP2025 276.67 0.00 3,789.45 2,738.88 17,000.00 24422EWK1 JOHN DEERE CAPITAL CORP 4.15% 15SEP2027 141 .91 0.00 7,049.95 3,343.06 20,750.00 46625HRYB JPMORGAN CHASE & CO 3.782% 01 FEB2028 (CALLABLE 01 FEB27) 1,804.39 0.00 12,785.24 6,093.23 0.00 717081ET6 PFIZER INC 3.45% 15MAR2029 (CALLABLE 15DEC28) 1,337.66 0.00 13,681.68 3,612.92 22,425.00 89236TKQ7 TOYOTA MOTOR CREDIT CORP 4.625% 12JAN2028 144.83 0.00 8,682.31 4,098.27 0.00 91159HHN3 US BANCORP 2.375% 22JUL2026 (CALLABLE 22JUN26) 1,878.70 0.00 7,191.59 1,913.19 0.00 20 December 3, 2024, Item #4
DETAIL OF RETURN AND INTEREST RECEIVED
CITY OF POWAY
For the period September 1, 2024 - September 30, 2024
N
O'I
~usip Description Accretion Realized gain Change in fair Interest earned Interest received w {amortization) (loss) value w
Corporate Bonds
91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 181.40 0.00 6,796.61 3,297.30 0.00 - --~
~
-Total Corporate Bonds 15,012.72 0.00 162,972.45 70,661.80 175,890.00 Government Agencies
3136G4K85 FANNIE MAE 0.5% 18AUG2025 CALLABLE #0000 4,705.76 0.00 8,446.96 543.75 0.00 3133EN5N6 FEDERAL FARM CREDIT BANK 4% 06JAN2028 (89.66) 0.00 4,378.23 3,544.45 0.00 3133EPCG8 FEDERAL FARM CREDIT BANK 4.125% 01 DEC2027 182.28 0.00 6,177.08 3,322.92 0.00 3133EP5U5 FEDERAL FARM CREDIT BANK 4.125% 20MAR2029 236.19 0.00 13,548.58 6,645.84 41,250.00 3133EPK79 FEDERAL FARM CREDIT BANK 4.375% 07DEC2026 96.65 0.00 6,290.83 4,229.17 0.00 3133EPUW3 FEDERAL FARM CREDIT BANK 4.75% 01 SEP2026 374.13 0.00 11,644.90 7,652.78 47,500.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 (CALLABLE 1 ONOV24) 0.00 0.00 5,126.04 402.77 0.00 3130ALHHO FEDERAL HOME LOAN BANK 0. 96% OSMAR2026 (CALLABLE 05NOV24) 6,457.09 0.00 13,164.51 1,778.66 11,040.00 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 5,008.28 0.00 13,095.25 2,315.97 0.00 3130APJH9 FEDERAL HOME LOAN BANK 1.25% 280CT2026 (CALLABLE 280CT24) #0006 4,182.58 0.00 14,226.26 2,064.23 0.00 3130AEB25 FEDERAL HOME LOAN BANK 3.25% 09JUN2028 2,649.49 0.00 17,896.27 7,068.75 0.00 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027 114.24 0.00 12,426.76 6,645.83 41,250.00 3130ATUS4 FEDERAL HOME LOAN BANK 4.25% 1 ODEC2027 (185.44) 0.00 17,212.28 6,847.22 0.00 3130AWLZ1 FEDERAL HOME LOAN BANK 4.75% 12JUN2026 101 .94 0.00 5,271.59 4,209.03 0.00 3134A2HG6 FREDDIE MAC 0% 11 DEC2025 3,480.56 0.00 6,528.05 0.00 0.00 - - -- -
Total Government Agencies 27,314.09 0.00 155,433.59 57,271.37 141,040.00 --·~ --· -----·--- -- ---- -- ---- - -·-
21 December 3, 2024, Item #4
DETAIL OF RETURN AND INTEREST RECEIVED
CITY OF POWAY
For the period September 1, 2024 - September 30, 2024
N ....
~usip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value w
Government Bonds
91282CAJO USA TREASURY 0.25% 31 AUG2025 3,109.45 0.00 8,443.75 290.06 1,750.00 91282CAT8 USA TREASURY 0.25% 31 OCT2025 2,949.61 0.00 7,781.24 244.56 0.00 912828ZL7 USA TREASURY 0.375% 30APR2025 5,235.84 0.00 14,635.92 886.55 0.00 91282CBC4 USA TREASURY 0.375% 31 DEC2025 4,664.20 0.00 15,812.50 703.12 0.00 91282CBT7 USA TREASURY 0.75% 31 MAR2026 3,663.09 0.00 9,351.57 860.66 5,250.00 91282CCH2 USA TREASURY 1.25% 30JUN2028 3,775.19 0.00 13,480.45 1,732.34 0.00 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 5,145.07 0.00 16,156.25 2,394.70 0.00 912828YH7 USA TREASURY 1.5% 30SEP2024 (845.67) 0.00 2,774.10 1,229.51 7,500.00 912828YM6 USA TREASURY 1.5% 31 OCT2024 (851.47) 0.00 3,546.41 1,34S.10 0.00 912828YU8 USA TREASURY 1.625% 30NOV2026 3,599.72 0.00 10,500.00 2,131.15 0.00 912828YYO USA TREASURY 1.7S% 31 DEC2024 (1,075.57) 0.00 3,300.78 1,426.63 0.00 9128283F5 USA TREASURY 2.25% 15NOV2027 1,159.23 0.00 7,906.25 2,017.66 0.00 91282CEF4 USA TREASURY 2.5% 31 MAR2027 1,774.73 0.00 6,210.94 2,049.18 12,500.00 91282CET4 USA TREASURY 2.625% 31 MAY2027 2,446.16 0.00 12,890.62 4,303.28 0.00 912828XZ8 USA TREASURY 2.75% 30JUN2025 2,193.73 0.00 6,251.96 3,362.77 0.00 91282CFB2 USA TREASURY 2.75% 31JUL2027 2,802.12 0.00 12,023.44 4,035.32 0.00 9128285N6 USA TREASURY 2.875% 30NOV2025 2,597.21 0.00 8,367.19 4,006.1S 0.00 91282CEY3 USA TREASURY 3% 15JUL2025 369.91 0.00 1,211.16 815.22 0.00 9128285M8 USA TREASURY 3.125% 15NOV2028 2,529.87 0.00 16,585.93 5,604.62 0.00 91282CFJ5 USA TREASURY 3.125% 31 AUG2029 54.89 0.00 (285.27) 0.01 0.00 22 December 3, 2024, Item #4
DETAIL OF RETURN AND INTEREST RECEIVED
For the period September 1, 2024 - September 30, 2024
N
00 ~usip
w w
Description
Government Bonds
91282CEW7 USA TREASURY 3.25% 30JUN2027
91282CHE4 USA TREASURY 3.625% 31 MAY2028
91282CFUO USA TREASURY 4.125% 31 OCT2027
Total Government Bonds
:-:a o1t:1
Accretion
(amortization)
886.82
477.57
435.85
47,097.55
•k~1•
Realized gain
(loss)
0.00 0.00
0.00 0.00
0.00 Change in fair
value
4,625.00
13,617.20
12,796.87
-
207,984.26
52 9 .3
CITY OF POWAY
Interest earned Interest received
1,960.60 0.00
6,239.75 0.00
7,061.82 0.00
- -54,700.76 27,000.00
18 7 2 4
23 December 3, 2024, Item #4
TRANSACTION REPORT
CITY OF POWAY
For the period September 1, 2024 - September 30, 2024
N
\D
g_Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wSettle date shares gain(loss)
08/31/2024 91282CAJO Income Government Bonds USA TREASURY 0.25% 08/31/2025 1,400,000.00 0.00 0.00 1,750.00 1,750.00 08/31/2024
09/01/2024 194162AR4 Income Corporate Bonds COLGATE-PALMOLIVE CO 4.6% 03/01/2028 2,400,000.00 0.00 0.00 55,200 .00 55,200 .00 09/01/2024
09/01/2024 3133EPUW3 Income Government Agencies
FEDERAL FARM CREDIT BANK 09/01/2026 2,000,000 .00 0.00 0.00 47,500 .00 47,500 .00 09/01/2024
09/04/2024 91282CEY3 Bought Government Bonds USA TREASURY 3% 15JUL2025 07/15/2025 400,000 .00 0.00 (395,532.59) (1,695.65) (397,228.24) 09/05/2024
09/05/2024 3130ALHHO Income Government Agencies FEDERAL HOME LOAN BANK 03/05/2026 2,300,000.00 0.00 0.00 11,040.00 11,040.00 09/05/2024
09/09/2024 02665WBH3 Income Corporate Bonds AMERICAN HONDA FINANCE 09/09/2026 1,100,000.00 0.00 0.00 12,650.00 12,650.00 09/09/2024
09/10/2024 3130ATHWO Income Government Agencies
FEDERAL HOME LOAN BANK 09/10/2027 2,000,000.00 0.00 0.00 41,250 .00 41,250.00 09/10/2024
09/11/2024 24422ETC3 Income Corporate Bonds JOHN DEERE CAPITAL CORP 09/11/2025 1,000,000 .00 0.00 0.00 17,000.00 17,000.00 09/11/2024
09/12/2024 037833DB3 Income Corporate Bonds APPLE INC 2. 9% 12SEP2027 09/12/2027 1 ,300,000.00 0.00 0.00 18,850.00 18,850.00 09/12/2024
09/15/2024 24422EWK1 Income Corporate Bonds JOHN DEERE CAPITAL CORP 09/15/2027 1,000,000.00 0.00 0.00 20,750.00 20,750.00 09/16/2024
09/15/2024 717081ET6 Income Corporate Bonds PFIZER INC 3.45% 15MAR2029 03/15/2029 1,300,000.00 0.00 0.00 22,425.00 22,425.00 09/15/2024
09/20/2024 3133EP5U5 Income Government Agencies FEDERAL FARM CREDIT BANK 03/20/2029 2,000,000.00 0.00 0.00 41,250.00 41,250.00 09/20/2024
09/26/2024 91282CFJ5 Bought Government Bonds USA TREASURY 3.125% 08/31/2029 1,200,000 .00 0.00 (1,175,300.90) (3,107.73) (1,178,408.63) 09/30/2024
09/29/2024 17325FBB3 Income Corporate Bonds CITIBANK NA 5.803% 09/29/2028 1,000,000.00 0.00 0.00 29,015.00 29,015.00 09/29/2024
09/30/2024 912828YH7 Income Government Bonds USA TREASURY 1.5% 09/30/2024 1,000,000.00 0.00 0.00 7,500.00 7,500.00 09/30/2024
09/30/2024 912828YH7 Capital Change Government Bonds
USA TREASURY 1.5% 09/30/2024 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000 .00 09/30/2024
09/30/2024 91282CBT7 Income Government Bonds USA TREASURY 0.75% 03/31/2026 1,400,000.00 0.00 0.00 5,250.00 5,250.00 09/30/2024
-· - -------- ----- -- - - --·-- - -- -·- ---- -- ---
24 December 3, 2024, Item #4
w
0 TRANSACTION REPORT
For the period September 1, 2024 - September 30, 2024
g, Trade date Cusip Transaction Sec type Description Maturity Par value or Realized
CITY OF POWAY
Principal Interest Transaction total
wsettle date shares gain(loss) w __________________________________________________________ _ 09/30/2024 91282CEF4 Income Government Bonds USA TREASURY 2.5% 03/3112027 1,000,000.00 0.00 0.00 12,500.00 12,500.00 09/30/2024
09/30/2024 Income Cash and Cash Equivalents Cash 0.00 0.00 0.00 1,068.72 1,068.72 25 December 3, 2024, Item #4
ADDITIONAL INFORMATION
CITY OF POWAY
As of September 30, 2024
w
.... Past performance is not indicative offuture results. Investment in any strategy involves a risk of loss which may partly be due to exchange rate fluctuations. 0 ~The performance results shown, whether net or gross of investment management fees, reflect the reinvestment of dividends and/or income and other earnings. Any gross of fees performance does not include fees and Wcharges and these can have a material detrimental effect on the performance of an investment. The performance shown is for the stated time period(s) only.
Any target performance aims are not a guarantee, may not be achieved and a capital loss may occur. Funds which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected. Investments are subject to risks, including loss of principal. There can be no guarantee that any investment strategy will meet the liability funding needs of a particular client.
Performance information for certain accounts may reflect performance achieved while the account was managed at a prior firm . In addition, the performance and customized benchmark information for these periods are based on Information from 3rd parties that Insight believes to be accurate, but Insight has not independently verified such information and no representation is made regarding its accuracy or completeness.
The quoted benchmarks do not reflect deductions for fees, expenses or taxes. These benchmarks are unmanaged and cannot be purchased directly by investors . Benchmark performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be material factors relevant to any such comparison such as differences in volatility, and regulatory and legal restrictions between the indices shown and the strategy .
Any currency conversions performed for this presentation, use FX rates as per WM Reuters 4pm spot rates, unless noted otherwise.
Funds and portfolios with an ESG objective follow a sustainable or ESG related investment approach, which may cause them to perform differently than funds that are not required to integrate sustainable investment criteria when selecting securities . Funds and portfolios with no ESG objective are not required to integrate sustainable investment criteria when selecting securities so any ESG approach shown is only indicative and there is no guarantee that the specific approach will be applied across the whole portfolio.
This is a client report intended for professional clients only. This material is for professional clients only and is not intended for distribution to retail clients. This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted . This document is intended only for the parties to whom it was delivered or its authorised agents and should not be copied or passed to any other person. Please contact the Client Services Team if there has been any change in your financial circumstances or risk tolerance since the previous valuation that could affect the investment objective of your portfolio. Insight obtains market data and prices from an independent pricing source for all of our currency positions on a daily basis. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker .
Some information contained in this client report comes from external sources which Insight believes to be reliable . A list of sources is available on request. All statistics represent month end figures unless otherwise noted. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future . Insight does not provide tax or legal advice to its clients and all investors are strongly urged to seek professional advice regarding any potential strategy or investment. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security.
Insight Investment is the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL) and Insight North America LLC (INA), each of which provides asset management services. This group of companies may be referred to as 'Insight' or 'Insight Investment'.
Please compare the information provided in this statement to the information provided in the statement received from your Custodian. This report is not intended to replace your custodial statement which is your official record for all pertinent account information. Please notify us promptly if you do not receive from your custodian on at least a quarterly basis account statements that contain the amount of funds and each security in the account at the end of the period and all transactions in the account during that period .
For clients based in North America:
This material is for professional clients only and is not intended for distribution to retail clients.
Investment advisory services in North America are provided through two different investment advisers registered with the Securities and Exchange Commission (SEC). using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with other global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as 'Insight' or 'Insight Investment' . INA is registered with the CFTC as a Commodity Trading Advisor and a Commodity Pool Operator and are members of the NFA.
Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy . In addition, the strategy's holdings may differ substantially from the securities that comprise the indices shown .
The ICE BofA 3 Month UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.
The ICE BofA 6 Month UST-Bill index measures the performance ofTreasury bills with time to maturity of less than 6 months. 26 December 3, 2024, Item #4
w N
ADDITIONAL INFORMATION
As of September 30, 2024
CITY OF POWAY
g, The ICE BofA 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned won or before the third business day before the last business day of the month. w
The ICE BofA 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month.
The ICE BofA 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month.
The ICE BofA 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years.
The ICE BofA 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. © 2024 Insight Investment. All rights reserved.
27 December 3, 2024, Item #4
w w
0 ....
w
w
► •
City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash September 2024
Investments 8: Cash with Fiscal Al!ents
Settlement I Yield to
INVESTMENT DESCRIPTION Date
1st Am Gov't Obligations Money Mkt Fd 09/30/24
Maturity
Variousj
Average /Total
Paying Agent or Uninvested Cash &. DITs
Total Investments and Cash with Fiscal Agent
Variousj
Part I
-
% of Total Face
. d I Maturity , Investment ___ Value
11. 100.00%1
- ir
I
I I
1) 100.00%1
Book
Value
$503,005.95
$0.00
$503,005.95
Market
Value
$503,005.95
$503,005.95
~ n ~ -
Non-Manal!ed Investments
t'art II
~
~ m
z
~
C
INVESTMENT DESCRIPTION
County Pool
Average/Total
General, Payroll 8: Petty Cash
General Cash (Union Bank)
Payroll Cash (Union Bank)
Emergency Cash (Union Bank)
Grant Cash (Union Bank)
Flexible Benefits Cash (Union Bank)
Petty Cash
Total Cash
Settlement Yield to
Date Maturity
09/30/24 1 3.67%1
I
I 3.67%1
Days to % of Total
Maturity Investment
1 I - 100.00%1 -
- I - -1 --
N/A I 100.00%1 ;--
----
Part Ill
Face -1 r - Book
-1 I
- Market
-1 ----Unrealized
Value . Value Value Gain(Loss)
s21,452.oo I s21,452.oo 1 - s21,257.oo 1 - ($195.00) 1
I
---
I I I - I
s21,452.oo I s21,452.oo I - s21,257.oo I - ($1 95.00) 1 ---
r Book
Value
$1,340,036.68
$20,000 .00
s10,ooo.oo I r-
$0.00
$30,000.00
$8,600.00
$1,408,636.68
December 3, 2024, Item #4
AG EN DA REPORT City of Poway
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
December 3, 2024
Honorable Mayor and Members of the City Council
Craig Schmollinger, Director of Finance ~
Mehrnoush Jamshidi, Finance Manager
858-668-4426 or [email protected]
Annual Investment Policy Review
CITY COUNCIL
Pursuant to California Government Code Sec. 53646 and the City's Investment Policy (Policy), the Director of Finance serving in the capacity as City Treasurer, per the Poway Municipal Code is submitting the Policy to the City Council for its annual review. This Policy is an important tool for ensuring the stewardship of the City's financial resources. Staff is not proposing any changes to the Policy.
Recommended Action:
There is no recommended action; this item is a report and file only.
Discussion:
The City of Poway invests its funds according to parameters set forth in the City's adopted Policy. The Policy is consistent with California Government Code Section 53600, et seq. which provides standards regarding investment policies and reports, securities, and repurchase agreements for local agencies.
The Policy was last modified and/or reviewed on May 21, 2024, as a catchup annual review missed in late 2023. The 2023 review was missed due to staffing changes in the Finance department.
Since July 1, 1996, the City has worked with an investment advisor to assist in the administration of the City's investment portfolio. The current investment advisor is Insight Investment, an investment firm of BNY Mellon Investment Management. The Policy defines the role of the City's investment advisor and the procedures to be followed. Per the Policy, the Investment Oversight Committee (Committee) comprised of the Director of Finance, the Finance Manager, and the Senior Accountant, oversees the investment of the City's funds. This Committee works with the investment advisor to ensure the Policy is being followed.
1 of 12
December 3, 2024, Item #5
Based on a review of the Policy, the Committee and investment advisor have no proposed changes to the current investment Policy. The Policy is included as Attachment A for reference .
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The Investment Policy is designed to enhance the economic status of the City while protecting its funds.
Public Notification:
None.
Attachments :
A. Investment Policy
Reviewed/Approved By:
Wend serman
A=s~ City Manager
2 of 12
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
c~
City Manager
December 3, 2024, Item #5
CITY OF POWAY
INVESTMENT POLICY
Dated: December 3, 2024
The City of Poway (the City) has adopted this Investment Policy (Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All City funds will be invested in accordance with this Policy and with applicable sections of the California Government Code.
This Policy replaces any previous Policy or investment procedures of the City.
SCOPE
The provisions of this Policy shall apply to all financial assets and investment activities of the City as accounted for in the City's Comprehensive Annual Financial Report. The employees' retirement and deferred compensation funds are not covered by this Policy. Also, bond reserve funds will be invested in accordance with each bond issue's indenture agreement.
All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the General Fund, the Water Fund, the Sewer Fund, and other funds as budgeted or required by legislation based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually.
OBJECTIVES
The City's funds shall be invested in accordance with all applicable City resolutions, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market rate of return.
4. Diversification to avoid incurring unreasonable market risks.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
3 of 12 ATTACHMENT A
December 3, 2024, Item #5
DELEGATION OF AUTHORITY
In accordance with City of Poway Resolution No. 21-064, the City Treasurer/Finance Department is authorized to invest the City's funds in accordance with the California Government Code Section 53607. The City's Director of Finance serves as the Treasurer. The Director of Finance may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.
The Director of Finance shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the City's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the City.
The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. If an investment advisor is selected to help manage the investment program, a City Investment Oversight Committee shall be kept informed of the changing investment environment and any potential restructuring of the portfolio which could result. This Investment Committee shall consist of the Director of Finance, the Finance Manager, and the Senior Accountant.
PRUDENCE
The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency."
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City.
The Director of Finance and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments.
4 of 12
December 3, 2024, Item #5
ETHICS AND CONFLICTS OF INTEREST
Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City's investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Councilmembers, the Director of Finance, the Finance Manager, and the Senior Accountant shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted.
The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual preference, or physical disability.
The City has further restricted the eligible types of securities and transactions as follows:
1. United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the portfolio that may be invested in U.S. Treasury securities.
2. Government Securities
Government Securities in the aggregate shall not exceed 75% of the City's total portfolio. • Federal Instrumentality Obligations (government sponsored enterprises) with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio.
• Federal Agency Obligations with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Mortgage-Related Securities, including Federal Agency and Federal Instrumentality mortgage-backed securities and collateralized mortgage obligations. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "MA" by at least one Nationally Recognized Statistical Ratings Organization (NRSRO) and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in the combination of Mortgage-Related Securities and Asset-Backed Securities.
5 of 12
December 3, 2024, Item #5
3. Supranationals are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 30% of the City's total portfolio shall be invested pursuant to this section.
4. Corporate Securities
No more than 5% of the City's portfolio shall be invested in the obligations of any one corporate issuer. Rule 144A (private placement) securities are prohibited from purchase. • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Such securities shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least "A", or the equivalent, by an NRSRO. No more than 30% of the City's total portfolio shall be invested in Medium-term Notes.
• Asset-Backed Securities including equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer-receivable-backed bonds. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one NRSRO and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in Mortgage-Related Securities and Asset-Backed Securities. • Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement and rated at least "A-1", or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below:
A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by an NRSRO.
B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO.
Investment in commercial paper shall not exceed 25% of the City's total portfolio.
5. Municipal Bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states.
In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Municipal Bonds must be rated at least "A" or the equivalent by an NRSRO with maturities not exceeding five years from the date of trade 6 of 12
December 3, 2024, Item #5
settlement. No more than 5% of the City's portfolio shall be invested in the obligations of any one issuer, and the aggregate investment in municipal bonds shall not exceed 30% of the City's total portfolio.
6. Negotiable Certificates of Deposits (CDs) of commercial banks rated at least "A-1", or the equivalent, with maturities not exceeding five years from the date of trade settlement. In addition, the City may not invest in the CD of a state or federal credit union where any person with investment decision making authority at the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. No more than 5% of the portfolio may be invested in the CDs of any one issuer, and the aggregate investment in CDs shall not exceed 30% of the portfolio.
7. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5.
Deposits in excess of the insured amount shall be secured pursuant to California Government Code Section 53651 and 53652. The City shall comply with and act to secure compliance with the security (collateralization) system specified in the Government Code Section 53649 and 53652.
8. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least "A", or the equivalent, by an NRSRO at the time of purchase. Banker's Acceptances shall be rated at least "A-1", or the equivalent, at the time of purchase by an NRSRO. No more than 5% of the City's total portfolio shall be invested in banker's acceptances of any one bank and the aggregate investment in banker's acceptances shall not exceed 40% of the City's total portfolio.
9. Money Market Funds registered under the Investment Company Act of 1940 that (1) are "no load" (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in the applicable California statutes and (4) have a rating of at least "AAA", or the equivalent by at least two NRSROs. No more than 10% of the portfolio may be invested in any one fund and the aggregate investment in money market funds shall not exceed 20% of the City's total portfolio.
10. Shares of Beneficial Interest issued by a joint powers authority (e.g., CalTRUST) organized pursuant to Section 6509.7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that:
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(1) is registered or exempt from registration with the Securities and Exchange Commission.
(2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601.
(3) has assets under management in excess of $500,000,000.
December 3, 2024, Item #5
11. State of California's Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1.
12. The San Diego County Investment Pool. The City may invest in this investment pool, established by the San Diego County Treasurer for the benefit of local public agencies.
The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council.
INVESTMENT MANAGEMENT
If the City has employed an external investment advisor to help manage its portfolio, the investment advisor shall be bound by the aforementioned list of authorized securities, the state and local laws and regulations that govern the investment activity of the City, and the following additional parameters.
• While it is understood that occasionally it may be in the best interest of the City to take losses in its security portfolio, losses taken to increase the yield in the portfolio may only be taken if the increased yield results in the loss being recouped in one year or less.
Credit-related losses on the other hand are taken to prevent potentially larger losses in the future. When possible, the investment advisor will get prior approval of the City before taking credit-related losses. In any case, the City will be notified as soon as possible about any losses taken in the portfolio.
• Securities that are downgraded by one or more rating agency to below the ratings required by this Policy do not have to be sold. However, the investment advisor will immediately notify the City of the downgrade. The advisor will prepare a credit report on the downgraded security and forward it to the City.
While the City entrusts its investment portfolio to the advisor, the City retains the right to ultimately make the decisions on how to invest its monies.
INVESTMENT DIVERSIFICATION
The City shall diversify its investments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City's anticipated cash flow needs.
PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 8 of 12
December 3, 2024, Item #5
SELECTION OF BROKER/DEALERS
The Finance Manager shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code.
To be eligible, a firm must meet at least one of the following criteria:
1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or
2. Report voluntarily to the Federal Reserve Bank of New York, or
3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).
The City may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers. Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request.
In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City's portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy and each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements.
The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealers list as long as they meet the criteria outlined in Item 4 of the Authorized Securities and Transactions section of this Policy.
COMPETITIVE TRANSACTIONS
All investment transactions shall be conducted competitively with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded.
If the City is offered a security for which there is no other readily available competitive offering, then the Finance Manager will document quotations for comparable or alternative securities.
SELECTION OF BANKS
The Finance Manager shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the City. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652.
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December 3, 2024, Item #5
SAFEKEEPING AND CUSTODY
The Finance Manager shall select one or more banks to provide safekeeping and custodial services for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services.
Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the City.
Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices.
All deliverable securities purchased by the City will be delivered by book entry and will be held in third-party safekeeping by a City approved custodian bank or its Depository Trust Company (OTC) participant account.
PORTFOLIO PERFORMANCE
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City's investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio's weighted average effective maturity. When comparing the performance of the City's portfolio, its rate of return will be computed net of all fees and expenses.
REPORTING
Quarterly, the Director of Finance shall submit to the City Council a report of the investment earnings and performance results of the City's investment portfolio. The report shall include the following information:
1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;
2. A description of the funds, investments, and programs;
3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;
4. A statement of compliance with the Investment Policy or an explanation for non compliance; and
5. A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case. 10 of 12
December 3, 2024, Item #5
POLICY REVIEW
This Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification, and its relevance to current law and economic trends. Amendments to this Policy shall be approved by resolution of the City Council.
SEGREGATION OF RESPONSIBILITIES
FUNCTION
1.0 Investment Policy:
1.1 Preparation and annual review
of Investment Policy
1.2 Approval of Investment Policy
2.0 Investment Transactions:
2.1 Calculation of cash position
2.2 If applicable, notify investment advisor
of current available cash
to be invested
2.3 Investment recommendation:
Determination of amount to be invested,
selection of type of investment, and
term of investment
2.4 Review of investment recommendation
and execution of transaction
3.0 Recording of Transactions:
3.1 In investment subsidiary ledgers
3.2 In accounting records
3.3 Match investment confirmation
to subsidiary ledgers
4.0 Safeguarding of Assets and Records:
4.1 Reconciliation of subsidiary records to
the accounting records
4.2 Reconciliation of subsidiary records to
bank statements and safekeeping records
4.3 Review of financial institutions and
investment brokers' reputation and
financial condition
4.4 Review of collaterals
5.0 Investment portfolio:
5.1 Preparation of investment report
5.2 Review of portfolio for compliance
with stated Investment Policy
5.3 Approval of investment report
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RESPONSI Bl LITY
Director of Finance/
Oversight Committee
City Council
Sr. Accountant/Finance Mgr.
Written approval by 2 members
of Oversight Committee
Investment Advisor/
Director of Finance/Finance Mgr.
Written approval by member
of Oversight Committee
Sr. Accountant/Accountant
Sr. Accountant/Accountant
Senior Accountant
Senior Accountant
Senior Accountant
Investment Advisor/
Oversight Committee
Investment Adv./Oversight Comm.
Senior Accountant
Oversight Committee
City Council
December 3, 2024, Item #5
APPROVED BROKER/DEALERS
The following Broker/Dealers are approved for execution of trades.
Broker/Dealers
This list of approved broker/dealers is subject to change at any time based upon periodic recommendations of the investment advisor throughout the year.
Primary dealers or affiliated firms
Barclays Capital
BMO Capital Markets
BNP Paribas Securities
Bof A Securities
Cantor Fitzgerald & Co.
Citigroup Global rvlarkets
Daiwa Capital rv1arkets America
Deutsche Bank Securities
Goldman Sachs & Co.
HSBC Securities (USA)
.J,efferies
JP Morgan Securities
rv1izL11ho Securities USA
Morgan Stanley & Co.
NatWest rvla~kets Securities
Nornura Securities International
RBC Capital Markets
Santander US Capital !Markets
SG Americas Securities
TD Secmities (USA)
UBS Secunities
Wells Fargo Securities
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Non-primary dealer firms
ANZ Securities
Credit Agricole Securities (USA)
FHN Financial Securities
lnsperex
Keybanc Capital Markets
rv1UFG Securities Americas
Oppenheimer & Co.
Raymond James & Associates
Robert VV. Baird & Co.
Samuel A Ramirez & Co.
Scotia Capital (USA)
SMBC Nikko Securities America
Stifel Nico'laus & Co.
StoneX Financial
Truist Securities
US Bancorp Investments
December 3, 2024, Item #5
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT Cityo f Poway
December 3, 2024
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services ~
Alex Ubaldo, P.E., Principal Civil Engineer {'fri
858-668-4602 or [email protected] ~
CITY COUNCIL
Acceptance of the Poway Center for the Performing Arts Roof Replacement Project with AOS Inc., dba Superior Roofing, as Complete
On July 16, 2024, the City Council awarded the Poway Center for the Performing Arts (PCPA) Roof Replacement project contract to AOS Inc., dba Superior Roofing, Bid No. 23-009, in the amount of $1,097,990.00. This action will accept the project as complete.
Recommended Action:
It is recommended the City Council:
1) Accept the Poway Center for the Performing Arts Roof Replacement project as complete; 2) Authorize the City Clerk to file and record the Notice of Completion; 3) Authorize the release of the retention in the amount of $55,568.25 if unencumbered, 45 days after City Council acceptance;
4) Release the RLI Insurance Company Bond for Material and Labor in the amount of $1,097,990.00 after the release of retention; and
5) Retain the RLI Insurance Company Bond for Faithful Performance for a period of one (1) year.
Discussion:
The PCPA is a state-of-the-art professional theater, which opened in May 1990, with a seating capacity of 809. The PCPA was designed for professional and student performances ranging from major plays and concerts to appearances by individual artists. The PCPA multi-year phased project is the first comprehensive maintenance program to replace much of the mechanical, plumbing and electrical equipment in the facility as well as replace deteriorated interior finishes and roofing system. At this point in the building's lifespan, most of the equipment has outl ived its standard, useful life and needs replacement, including the roof system, which exhibited deterioration beyond repair.
On July 18, 2023, the City Council approved the design contract with Sillman Wright Architects to 1 of 2
December 3, 2024, Item #6
design a complete set of plans for a multi-year phased construction project for the PCPA. The design plans were submitted to the Division of State Architect (DSA) for review in July 2024. The DSA is the Building Code authority for buildings located on school sites. DSA review is required since the PCPA is a City building located on the campus. of Poway High School..The design package did not include the roof replacement since re-roofing with in-kind roof or with light-weight material is exempt from DSA review. The PCPA Roof Replacement project was therefore prioritized as Phase 1 construction for Summer 2024, while the remaining plans are under DSA review. Plan review comments from DSA are expected by December 2024.
On July 16, 2024, the City Council awarded the construction contract to AOS Inc., dba Superior Roofing for the Poway Center for the Performing Arts Roof Replacement project, Bid No. 24-009. The project removed the existing ballast roof and replaced it with a new membrane roofing system, including the parapet coping surrounding both the high and low roofs of the facility. Superior Roofing has completed all work in accordance with the contract plans and specifications. The only change order, in the amount of $13,375.00, consisted of installing additional roof tapering, fiber board, and tremco sheeting on the exposed steel beam uncovered during the original roof demolition. The final contract amount is $1,111,365.00.
Environmental Review:
The action of acceptance of public improvements that have been completed, which were the subject of a prior environmental determination, is not considered a Project pursuant to Section 15378(b)(5) of the CEQA Guidelines and therefore not subject to the California Environmental Quality Act.
Fiscal Impact:
There are sufficient funds available in the project account (MN043) for the release of retention. Poway Unified School District will reimburse the City 35% of the total construction costs upon completion of the project, per the City and PUSD's joint use agreement for the PCPA. Funds remaining in the project at year end will be returned to the Capital Facilities Fund for use on other projects.
Public Notification:
None.
Attachments:
None.
Reviewed/Approved By:
Assistant City Manager
2 of 2
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chr~
City Manager
December 3, 2024, Item #6
AGENDA RE PQ RT City of Pow ay
DATE:
TO:
FROM:
CONTACT:
December 3, 2024
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services Cf
Miguel Solano, Assistant Engineer
858-668-4653 or [email protected] I'{
CITY COUNCIL
SUBJECT: Acceptance of the FY 2023-24 Water Valve Replacement Project with M-Rae Engineering, Inc., as Complete
Summary:
On August 20, 2024, the City Council awarded the FY 2023-24 Water Valve Replacement project contract to M-Rae Engineering, Inc., Bid No. 25-001, in the amount of $361,000.00. This action will accept the project as complete.
Recommended Action:
It is recommended the City Council:
1) Accept the FY 2023-24 Water Valve Replacement project, as complete; 2) Authorize the City Clerk to file and record the Notice of Completion; 3) Authorize the release of the retention in the amount of $19,021.16 if unencumbered, 45 days after City Council acceptance;
4) Release the Merchants Bonding Company (Mutual) Bond for Material and Labor in the amount of $361,000.00 after the release of retention; and
5) Retain the Merchants Bonding Company (Mutual) Bond for Faithful Performance for a period of one (1) year.
Discussion:
The Water Valve Replacement Project is an annual program for replacement of valves serving Poway's water distribution system. A total of ten water valves, located in various parts of the distribution system, were determined by the Public Works Utilities Division to have aged beyond their reliable service life.
This action accepts the FY 2023-24 Water Valve Replacement project as complete. M-Rae Engineering, Inc. completed all work in accordance with the contract plans and specifications. The change order, in the amount of $19,421.10, consisted of hand digging around adjacent private utility lines, as opposed to using machinery, to protect the utility lines. The final contract amount is $380,423.10. 1 of 2
December 3, 2024, Item #7
Environmental Review:
This action of acceptance of public improvements that have been completed, which was the subject of a prior environmental determination, is not considered a Project pursuant to Section 15378(b)(5) of the California Environmental Quality Act (CEQA) Guidelines and therefore not subject to the CEQA.
Fiscal Impact:
There are sufficient funds available in the project account (WT002) for the release of retention. Funds remaining in the project at year end will remain in the account to be combined with future appropriation for this annual water CIP program.
Public Notification:
None.
Attachments:
None
Reviewed/Approved By:
Assistant City Manager
2 of 2
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Ch,J;L
City Manager
December 3, 2024, Item #7
AGENDA REPORT CityofPoway
DATE:
TO:
FROM:
CONTACT:
December 3, 2024
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services er
Miguel Solano, Assistant Engineer
858-668-4653 or [email protected]
CITY COUNCIL
SUBJECT: Acceptance of the Neighborhood Sidewalks Powers Road Project with LC Paving & Sealing, Inc., as Complete
Summary:
On June 4, 2024, the City Council awarded the Neighborhood Sidewalks Powers Road project contract to LC Paving & Sealing, Inc., Bid No. 24-007, in the amount of $189,222.00. This action will accept the project as complete.
Recommended Action:
It is recommended the City Council:
1) Accept the Neighborhood Sidewalks Powers Road project, as complete; 2) Authorize the City Clerk to file and record the Notice of Completion; 3) Authorize the release of the retention in the amount of $10,244.94 if unencumbered, 45 days after City Council acceptance;
4) Release the Developers Surety and Indemnity Company Bond for Material and Labor in the amount of $189,222.00 after the release of retention; and 5) Retain the Developers Surety and Indemnity Company Bond for Faithful Performance for a period of one (1) year.
Discussion:
The Neighborhood Sidewalks Powers Road project involved constructing concrete sidewalks, access ramps, and driveways along Powers Road between Vaughan Road and Tassel Road in accordance with the American with Disabilities Act (ADA). The concrete work installed approximately 2,800 square feet of sidewalks where they were missing and reconstructed 3,200 square feet of driveways in order to meet ADA slope requirements.
This action accepts the Neighborhood Sidewalks Powers Road project as complete. LC Paving & Sealing, Inc. has completed all work in accordance with the contract plans and specifications. The two change orders, in the amount of $15,676.75, consisted of a tree removal not identified in the plans 1 of 2
December 3, 2024, Item #8
which would have compromised the integrity of the newly constructed sidewalk, and the difference between bid quantities and actual quantities placed as measured in the field. The final contract amount is $204,898.75.
Environmental Review:
This action of acceptance of public improvements that have been completed, which was the subject of a prior environmental determination, is not considered a Project pursuant to Section 15378(b)(5) of the California Environmental Quality Act (CEQA) Guidelines and therefore not subject to the CEQA.
Fiscal Impact:
This project is fully funded by TransNet. TransNet funds are generated by a half-cent sales tax approved by San Diego County voters to fund transportation projects in San Diego County. There are sufficient funds available in the project account (ST014) for the release of retention.
Public Notification:
None.
Attachments:
None
Reviewed/Approved By: Reviewed By:
W~ ~ er~ an Fenstermacher
Assistant City Manager City Attorney
2 of2
A~I
cMsHaehln
City Manager
December 3, 2024, Item #8
AGENDA REPORT CityofPoway
DATE:
TO:
FROM:
CONTACT:
December 3, 2024
Honorable Mayor and Members of the City Council
Alan Fenstermacher, City Attorney
Alan Fenstermacher, City Attorney
[email protected]
CITY COUNCIL
SUBJECT: Approval of Sixth Amendment to Employment Agreement for the City Manager Summary:
The purpose of the proposed amendment is to conform the City Manager Employment Agreement to the current terms of the Poway Municipal Code (PMC), and the nature of the Council-Manager form of government, as well as proposed updates to the PMC also on the December 3, 2024 City Council agenda pertaining to the Council-Manager form of government.
Recommended Action:
It is recommended the City Council authorize the Mayor to execute the Sixth Amendment (Attachment A) to the City Manager Employment Agreement between the City of Poway and Chris Hazeltine.
Discussion:
The proposed amendment would conform the City Manager Employment Agreement to the PMC, and clarify that members of the City Council may not contact City staff outside of a duly convened City Council meeting, and all other inquiries and direction must come through the City Manager. The December 3, 2024 agenda also includes updates to the PMC pertinent to the Council-Manager form of government. The proposed amendment also aligns the City Manager Employment Agreement with the proposed PMC changes.
The original City Manager Employment Agreement and five prior amendments are available on the City's website.
Environmental Review:
This item is not subject to CEQA review.
Fiscal Impact:
None.
1 of4
December 3, 2024, Item #9
Public Notification:
None.
Attachments:
A. Sixth Amendment to City Manager Agreement
Reviewed/Approved By:
Assistant City Manager
2 of4
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chris Hazeltine
City Manager
December 3, 2024, Item #9
SIXTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
THIS SIXTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT ("Sixth Amendment") is made and entered into effective the 3rd day of December, 2024, by and between the City of Poway, a municipal corporation ("City"), and Chris Hazeltine, an individual ("City Manager").
RECITALS
1. City and City Manager entered into that certain "CITY MANAGER EMPLOYMENT AGREEMENT," dated April 2, 2019 and effective May 6, 2019 (the "Agreement"), by which City and the City Manager established the terms, conditions, compensation and other benefits for the City Manager's employment by the City.
2. City and City Manager entered into five amendments to the City Manager Employment Agreement.
3. The City Council and City Manager desire to enter into this Sixth Amendment to clarify the nature of the Council-Manager form of government under which the City of Poway operates.
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
Section 1. Section 3(C)(2) of the Agreement is hereby amended to read as follows (additions in underline, deletions in strikeout):
Except for the purpose of inquiry and only at a duly convened meeting of the City Council, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consultants solely through the City Manager or the City Manager's designee, and neither the City Council nor any member thereof shall make requests of, give orders to, any subordinate of the City Manager, either publicly or privately.
Section 2. Except as otherwise amended by this Sixth Amendment , all other terms and conditions of the Agreement , as amended, shall remain in full force and effect. [Signatures on Following Page]
3 of4 ATTACHMENT A
December 3, 2024, Item #9
IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be executed the day and year first above written.
CITY OF POWAY CITY MANAGER
By ______________ _ By _____________ _
Steve Vaus, Mayor Chris Hazeltine
ATTEST:
Carrie Gallagher, City Clerk
APPROVED AS TO FORM:
Alan Fenstermacher, City Attorney
4 of 4 2
December 3, 2024, Item #9
December 3, 2024, Item #10
December 3, 2024, Item #10
December 3, 2024, Item #10
December 3, 2024, Item #10
December 3, 2024, Item #10
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PQ RT City of Poway
CITY COUNCIL
December 3, 2024
Honorable Mayor and Members of the City Council
Craig Schmollinger, Director of Finance
Craig Schmollinger, Director of Finance �
(858) 668-4411 or [email protected]
Public Hearing for Proposed San Diego County Water Authority Pass-Through Water Rates
The San Diego County Water Authority (SDCWA) recently approved a rate increase totaling 13.52% to Poway which takes effect in January 2025. This increase is more than double the 6% annual SDCWA rate increase built into the 2025 water rates adopted by the City Council on November 2, 2021. The new SDCWA rates trigger the need for an additional water rate increase to pass-through the new SDCWA costs to ratepayers. The Water Fund cannot absorb the projected $1.27 million in additional costs resulting from the increased SDCWA rates. To ensure the ongoing financial sustainability of the water enterprise system staff is recommending the new SDCWA rates be passed through to ratepayers beginning in January 2025 when they take effect. To be clear, staff would not be recommending additional rate changes for January 2025 were it not for the increased rates adopted by the SDCWA.
On October 15, 2024, the City set the December 3, 2024 public hearing date for a proposed SDCWA pass-through rate increase for water services. The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority-Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to the proposed SDCWA pass-through water rates. The notice (Attachment B) was mailed to 14,180 property owners with municipal water service on October 8, 2024, at least 45 days prior to the public hearing. Under the law, if written protests against the proposed rate increases are presented by a majority of property owners (i.e. more than 7,090 property owners), the increases shall not be approved. If a majority protest does not exist, Council may elect to approve the proposed pass-through rates at the conclusion of the public hearing.
As of November 25, 2024 a total of 49 protests were filed with the City Clerk. A summary of the protests filed with the city is shown in Attachment D. The actual protests are on file with the City Clerk's Office.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
1 of 17
December 3, 2024, Item #11
December 3, 2024, Item #11
Recommended
Action:
It
is
recommended
the
City
Council
take
public
input,
close
the
public
hearing,
and
adopt
the
resolution
with
the
SDCWA
pass-through
water
rates
if
a majority
protest
does
not
exist.
Discussion: After
a
review
of
water
purchase
cost
projections,
new
rate
increases
are
needed
to
ensure
the
financial
sustainability
of
the
water
enterprise
system.
The
October
15,
2024
Agenda
Report
explained
why
the
SDCWA
pass-through
rate
increases
were
necessary
. As
such,
this
Agenda
Report
will
briefly
summarize
the
information
contained
in
that
Agenda
Report.
The
October
15,
2024
Agenda
Report
has
been
included
as
a
courtesy
(Attachment
C)
for
those
that
did
not
have
the
opportunity
of
attending
the
meeting
or
reading
that
staff
report.
Proposed
San
Diego
County
Pass
-T
hrough
Water
Rates
The
SDCWA
recently approved
a rate
increase
totaling
13.52%
to
Poway
which
takes
effect
in
January
2025.
This
increase
is
more
than
double
the
6%
annual
SDCWA
rate
increase
built
into
the
2025
water
rates
adopted
by
the
City
Council
on
November
2,
2021
. The
new
SDCWA
rates
triggered
the
need
for
an
additional
water
rate
increase
to
pass-through
the
new
SDCWA
costs
to
ratepayers.
The
Water
Fund
cannot
absorb
the
projected
$1.27
million
in
additional
costs
resulting
from
the
increased
SDCWA
rates.
To
ensure
the
ongoing
financial
sustainability
of
the
water
enterprise
system
staff
is
recommending
the
new
SDCWA
rates
be
passed
through
to
ratepayers
beginning
in
January
2025
when
they
take
effect.
Proposed
rate
increases
to
pass-through
this
large
increase
from
SDCWA
to
Poway
customers
is
less
than
the
13.52%
increase
from
SDCWA.
This
is
accommodated
through
previously
approved
rates
for
January
1,
2025
implementation
(6%
SDCWA
increase
included),
and
other
factors
in
providing
on-demand
water
services.
This
helps
reduce
the
cost
of
service
passed
on
to
Poway
customers
from
the
SDCWA's
13.52%
increase
to
Poway
(i.e.
maintenance
and
operations,
water
treatment,
and
staff
cost
examples).
To
be
clear,
staff
would
not
be
recommending
additional
rate
changes
for
January
2025
were
it
not
for
the
increased
rates
adopted
by
the
SDCWA.
Imported
Water
:
Imported
water
represents
roughly
60%
of
water
operating
costs.
When
imported
water
costs
increase,
this
impacts
City
of
Poway
water
rates
. The
calculated
SDCWA
rate
and
charge
increase
to
the
City
is
13.52%
for
calendar
year
2025;
however
proposed
pass-through
rates
to
Poway
customers
are
less
than
this
large
increase
to
Poway
from
the
SDCWA
as
described
further
below.
As
illustrated
in
Table
1 later
in
the
report,
the
average
customer
will
see
an
increase
of
just
over
3%
on
their
bi
monthly
bills
as
a
result
of
the
SDCWA
pass-through
rate
increases
. In
an
effort
to
help
mitigate
impacts
to
member
agencies,
SDCWA
took
several
actions
to
reduce
the
increases
to
rates
including
applying
grant
funding
of
$19.7
million,
delaying
capital
expenses
of
$7
million,
and
trimming
operating
costs
by
$2
million.
Their
rate
increase
was
driven
by
an
average
rate
and
charge
increase
of
11 %
from
the
Metropolitan
Water
District
(MWD),
one
of
SDCWA
water
suppliers,
along
with
wholesale
costs
from
operating
the
Claude
"Bud"
Lewis
Desalination
Plant.
Additionally,
the
impacts
of
both
the
Rainbow
and
Fallbrook
Municipal
Water
District's
detaching
from
SDCWA
has
resulted
in
an
increase
in
SDCWA
costs
being
spread
among
the
remaining
23 member
agencies
that
continue
to
receive
water
from
the
SDCWA.
The
SDCWA
also
has
declining
water
sales
to
those
remaining
23 member
agencies
which
results
in
less
water
sold
to
spread
SDCWA
costs.
The
SDCWA
projected
their
2 of
17 December 3, 2024, Item #11
water sales downward by 20% and 15% from previous adopted figures for Fiscal Years 2024 and 2025, respectively (source: SDCWA Staff Report for Fiscal Years 2024 & 2025 Mid-Term Budget, June 19, 2024). The result is an increase in costs spread among less units of water sold for the remaining SDCWA member agencies, including Poway.
Since Poway's water rates are comprised of several factors (i.e. maintenance and operation of the water system, water treatment costs, and staffing costs), the actual pass-through rate increases to customers will be less than the 7.52% differential between the SDCWA rates the City anticipated in the rate model and the actual SDCWA rates which take effect in January 2025. The recommended water pass-through rate adjustments to recover the increased SDCWA wholesale water increases result in a uniform increase in water use (commodity) rates to City customers of $0.32 per billing unit (1 unit= 100-cubic feet= 748 gallons).
Estimated Residential Impacts:
Table 1 below shows the estimated impact to residential customers who have a¾" water meter and use 29 units of water over one bimonthly billing period (every two months).
Table 1: Estimated Residential Impacts (Water)
Approved Proposed
Existing Jan. 2025 Jan.2025
Revenue Increase (%) N/A 8% 3.2%2
Estimated Water Bill1 $269.90 $293.41 $302.73
Impact($) N/A $23.51 $9.32
1. Assumes the average residential customer has a¾" meter and uses 29 units of water bimonthly.
2. Proposed rate increase impact for the average residential customer.
As the table shows, the average residential customer would be paying $9.32 more per bimonthly billing period for water in January 2025 with the proposed rate adjustment. This impact reflects the difference between the already approved January 2025 rates with the proposed pass-through wholesale water rate adjustment.
Community Outreach
To help the community understand the impacts of the proposed pass-through rate increases, staff updated the residential bill estimator tool (https://poway.org/175/Rates-Fees). This will help evaluate how the proposed increases impact their specific usage patterns. This tool, as well as information specifically about the majority-protest public hearing, and proposed rates, are posted to the homepage of the City's website and the Water and Sewer Services section of the Finance Department webpage.
Timeline
The following graphic shows the proposed rate cycle for the potential rate adjustment.
Set Public Hearing: Mail 218 Notice: Public Hearing: Rates Effective:
October 15, 2024 By October 18, 2024 December 3, 2024 January 1, 2025 3 of 17
December 3, 2024, Item #11
Environmental Review:
This project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15273(a): modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies.
Fiscal Impact:
Based on the information contained in this staff report, sufficient revenues will be generated from the recommended water revenue increases to fund significant increased costs for water purchases from the SDCWA. For 2025 it is estimated approximately $1.27M in additional water revenues will be generated to offset new SDCWA costs if the proposed rates are adopted at the public hearing.
Safe reliable water delivered on demand to an average residential ratepayer costs approximately one penny per gallon.
Public Notification:
The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed SDCWA water, pass-through rates. The notice (Attachment B) was mailed on October 17, 2024, more than 45 days prior to the public hearing.
A Notice of Public Hearing was published in the Poway News Chieftain on November 21, 2024 and November 28, 2024.
As of November 25, a total of 49 protests were filed with the City Clerk.
Attachments:
A. Resolution Establishing Water Service Charges and Rates B. Notice of Public Hearing
C. October 15, 2024 Staff Report
D. Summary of Protests Received
Reviewed/Approved By:
Assistant City Manager
4 of 17
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
c~
City Manager
December 3, 2024, Item #11
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, ESTABLISHING WATER SERVICE
CHARGES AND RATES PER SECTION 13.11.120 OF THE
POWAY MUNICIPAL CODE
WHEREAS, the City of Poway provides water services to residents of Poway; WHEREAS, the California Constitution Article XIII D §6(a)(2) requires local governments hold a majority-protest public hearing and notify rate payers not less than 45 days in advance of the public hearing before increasing water rates and charges; WHEREAS, the city is proposing an adjustment to water rates as a pass-through of large increase in purchased water costs from the San Diego County Water Authority, to be effective from January 1, 2025 forward if approved;
WHEREAS, the City Council of the City of Poway held a duly noticed public hearing on December 3, 2024, pursuant to the provisions of Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act;
WHEREAS, the City Council received a final tabulation of all written protests received by the City Clerk at the December 3, 2024, Proposition 218 hearing; and WHEREAS, the City Council considered all written protests and heard oral arguments to the proposed rate structure changes and rates and charges at the public hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
SECTION 1: That the above recitations are true and correct; SECTION 2: The City Council hereby finds that no majority protest for the water rates and charges were received;
SECTION 3: The City Council hereby establishes and approves the San Diego County Water Authority pass-through water rates and charges for water, effective January 1, 2025, as set forth in the Notice of Public Hearing (Attachment B), for all water used on or after January 1, 2025. Any water rates or fees associated with water service, including raw water, not addressed within the Notice of Public Hearing shall remain in full force and effect as previously adopted; SECTION 4. That the setting of such charges and rates is statutorily and categorically exempt from the requirements of CEQA, pursuant to Section 21080(b )(8) of the Public Resources Code, and Title 14 of the California Code of Regulations, Sections 15273(a) and 15307; SECTION 5. This Resolution shall take effect immediately. 5 of 17 ATTACHMENT A
December 3, 2024, Item #11
Resolution
No
. 24-
Page
2 PASSED,
APPROVED
AND
ADOPTED
at
a
Regular
Meeting
of
the
City
Council
of
the
City
of
Poway,
California
on
the
3rd
day
of
December,
2024
by
the
following
vote,
to
wit:
AYES
:
NOES: ABSTAINED
:
ABSENT
:
DISQUALIFIED:
Steve
Vaus,
Mayor
ATTEST: Carrie
Gallagher,
City
Clerk
6 of
17 December 3, 2024, Item #11
The San Diego County Water Authority (SDCWA) recently approved a rate increase totaling 13.52% to Poway, which takes effect in January 2025. This increase is more than double the 6% annual SDCWA rate increase built into the 2025 water rates adopted by the City Council on November 2, 2021.
The new SDCWA rates trigger the need for an additional water rate increase to pass-through the new SDCWA costs to ratepayers. The Water Fund cannot absorb the projected $1.27 million in additional costs resulting from the increased SDCWA rates.
To ensure the ongoing financial sustainability of the water enterprise system staff is recommending the new SDCWA rates be passed through to ratepayers beginning in January 2025 when they take effect. Staff would not be recommending additional rate changes for January 2025 were it not for the increased rates adopted by the SDCWA. Since Poway's water rates are comprised of several factors (including maintenance and operation of the water system, water treatment costs, and staffing costs), the actual pass-through rate increases to customers will be less than the 7.52% differential between the SDCWA rates the City anticipated in the rate model and the actual SDCWA rates which take effect in January 2025. The average customer will see an increase of just over 3% on their bi-monthly bills as a result of the SDCWA pass-through rate increases.
As a best practice, almost all water agencies (20 out of 23) in San Diego County have pass-through provisions in their adopted rate schedules allowing them to automatically pass on any increases in SDCWA rates to customer. Poway does not. As a result -and in compliance with Proposition 218 -enclosed in this notice are the proposed pass-through rate adjustments for 2025. If the SDCWA didn't more than double the anticipated 6% annual increase in water purchase costs for 2025, Poway would not need to pass these costs on to water customers through the recommended adjustments.
7 of 17 ATTACHMENT B
NOTICE OF PUBLIC MEETING
Tuesday, December 3, 2024 at 7 p.m.
City Council Chambers
13325 Civic Center Drive, Poway
On Tuesday, December 3, 2024 at 7 p.m. the
Poway City Council will consider adopting
proposed changes to water charges. If
adopted, the rate adjustments will become
effective January 1 of 2025 and reflected on
bimonthly bill statements in March or April.
The City bills for water service bimonthly
(every two months) based on consumption
during the two months prior to the billing
date.
All interested persons are invited to
appear at the meeting to give oral or
written testimony on the proposed rate
adjustments. Rate protests must be
submitted in writing ahead of the council
meeting. City Council meetings are open
for in-person participation or viewing online.
Visit poway.org/councilmeetings for more
information.
Details on the written protest process are
located on the back page of this notice.
December 3, 2024, Item #11
Proposed
Pass
-Through
Changes
to
Water
Rates
The
City
of
Poway
provides
safe,
reliable
water
on
demand
to
its
customers
and
purchases
nearly
100
percent
of
its
water
from
SDCWA.
Purchased
water
represents
almost
60 %
of
City
water
operating
costs.
When
imported
water
costs
increase,
as
with
the
13.52 %
increase
in
2025,
this
significantly
impacts
City
water
rates
, which
are
passed
on
to
customers. The
current
adopted
water
rate
structure
assumed
SDCWA
annual
rate
increases
at
6%.
Actual
City
water
purchase
costs
for
2022,
2023
and
2024
have
been
in
close
alignment
with
City
projections
and
budgeted
figures
. However
, for
2025
the
cost
to
purchase
imported
water
has
increased
by
over
double
what
was
anticipated
in
the
adopted
water
rates
. The
SDCWA
adopted
rates
on
July
25,
2024
represent
a 13.52
%
increase
to
Poway
for
2025,
which
equates
to
an
additional
cost
of
$1.27
million.
The
City
cannot
absorb
these
large
increased
costs
for
wholesale
water
purchase.
To
help
ensure
the
financial
sustainability
of
the
water
enterprise,
to
ensure
legally
binding
debt
services
bond
covenants
are
met,
and
to
meet
Financial
Policy
m
inimum
reserve
requirements,
the
City
is
proposing
pass-through
adjustments
in
potable
water
rates
effective
on
January
1,
2025
.
•
For
additional
information
on
how
your
rates
have
been
calculated,
please
refer
to
the
staff
report
on
October
15,
2024
titled
"Set
Public
Hearing
for
Proposed
San
Diego
County
Water
Authority
Pass-Through
Water
Rates
for
2025
Implementation."
CURRENT
&
PROPOSED
PASS
-THROUGH
WATER
RATES
Single
Family
Residential
Tier
1: 1-20
Units
6.00 6.40
6.72 Tier
2: 21-56
Units
7.00 7.46
7.78 Tier
3: 57+
Units
9.73 10
.37
10.69 Multi-family
Residential
6.15 6.56
6.88 Landscape
Irrigation
8.53 9.09
9.41 Non-residential
6.54 6.97
7.29 City
Potable
Usage
6.54 6.97
7.29 1 unit
=
7 48
gallons
Any
water
rates
or
fees
associated
with
water
service,
including
raw
water
, not
addressed
with
in
this
notice
shall
remain
in
full
force
and
effect
as
previously
adopted
by
the
Poway
City
Council.
December 3, 2024, Item #11
Proposed
Pass
-Through
Rate
Change
Pro
tests
As
part
of
the
pass-through
rate
setting
process,
on
December
3,
2024,
the
City
of
Poway
will
conduct
a public
hearing
on
the
proposed
changes
to
rates
and
will
consider
all
oral
and
written
protests
to
the
proposed
pass-through
changes.
Oral
comments
at
the
public
hearing
will
not
qualify
as
formal
protests
unless
accompan
ied
by
a written
protest.
Only
one
written
protest
will
be
counted
per
identified
parcel.
While
email
is
not
an
official
rate
protest
mechanism
under
Cal
ifornia
law,
the
City
Counci
l values
resident
input
and
will
read
all
email
correspondence
regarding
rates
.
Written
protests
must
include
:
A
description
of
the
property,
such
as
the
address
or
assesso
r's parc~I
number;
and
The
name
and
signature
of
the
customer
subm
itting
the
protest.
The
City
Council
will
receive
a final
tabulation
of
all
written
protests
received
by
the
City
Clerk
. Written
protests
must
be
received
by
the
City
Clerk's
office
no
later
than
12 p.m
. December
3,
2024
or
can
be
submitted
in
writing
in
the
Council
Chambers
before
the
public
hearing
is
closed.
If
a majority
of
the
affected
customers
do
not
file
written
protests
of
the
proposed
rate
changes,
the
Council
will
then
consider
and
may
adopt
the
rate
changes
described
in
this
notice
. If
a majority
of
affected
customers
file
written
protests
,
the
City
Council
will
not
adopt
the
proposed
rate
adjustments
and
the
City
will
reconsider
the
rate
structure
and
rates
.
How
were
pass-thro
ugh r
ates
de
termined?
The
City
utilized
a
third-party
rate
consultant
as
utility
experts
in
water
rate
setting
who
leads
a
cost
of
service
study
update
in
partnership
with
staff.
The
study
designs
a
legally
compliant
rate
framework
that
recovers
water
costs
across
different
customer
classes
. These
studies
are
typically
updated
every
four
to
six
years
to
ensure
the
rate
design
remains
fair
and
equitable.
The
most
recent
study
was
performed
in
December
2019
and
updated
in
late
2021
for
rates
that
went
into
effect
beginning
in
January
2022
. The
current
review
involved
an
update
based
on
the
large
13.52%
increase
in
costs
to
the
City
from
the
SDCWA,
which
is
more
than
double
what
the
rate
structure
anticipated
for
purchased
water
costs
and
equates
to
$1.27
million
in
additional
costs
to
Poway
for
2025
.
9 of
17 For
rates
information
and
links
to
resources
quoted
in
this
notice,
scan
this
QR
code
or
visit:
poway.org/rates
-fees
.
December 3, 2024, Item #11
City of Poway
PO Box 789
Poway, CA 92074-0789
DATED MATERIAL
DO NOT DELAY DELIVERY
Important information about
your WATER account!
The City of Poway is mailing this notice to you because you are a water customer responsible for payment of water fees, or you are the owner of record for a property that receives water service. This notice describes proposed pass-through adjustments to water rates and provides notice of the upcoming public hearing at which these proposed changes will be considered by the Poway City Council. If you have any questions regarding this notice, please call (858) 668-4401. 10 of 17
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AG EN DA REPORT City of Poway
October 15, 2024
Honorable Mayor and Members of the City Council
Craig Schmollinger, Director of Finance @
Craig Schmollinger, Director of Finance
(858) 668-4411 or [email protected]
CITY COUNCIL
Set Public Hearing for Proposed San Diego County Water Authority Pass-Through Water Rates for 2025 Implementation
The San Diego County Water Authority (SDCWA) recently approved a rate increase totaling 13.52% to Poway which takes effect in January 2025. This increase is more than double the 6% annual SDCWA rate increase built into the 2025 water rates adopted by the City Council on November 2, 2021. The new SDCWA rates trigger the need for an additional water rate increase to pass-through the new SDCWA costs to ratepayers. The Water Fund cannot absorb the projected $1.27 milllon in additional costs resulting from the increased SDCWA rates. To ensure the ongoing financial sustainability of the water enterprise system staff is recommending the new SDCWA rates be passed through to ratepayers beginning in January 2025 when they take effect. To be clear, staff would not be recommending additional rate changes for January 2025 were it not for the increased rates adopted by the SDCWA. This staff report recommends setting the public hearing date on December 3, 2024 for proposed SDCWA water pass-through rate increases for water rates.
The City relies almost exclusively on the SDCWA for its raw water supply and therefore does not have a choice in accepting rate adjustments from the wholesale water provider. These increased costs were adopted by the SDCWA on July 25, 2024 and will go into effect in January 2025. While Poway's four year rates anticipated increases in the cost to purchase water of 6% per year, the new SDCWA increases to Poway are 13.52% which is well beyond what the rate model projected. City rates cannot absorb these large increased costs for wholesale water purchases, Since Poway's water rates are comprised of several factors (i.e. maintenance and operation of the water system, water treatment costs, and staffing costs), the actual pass-through rate increases to customers will be less than the
7.52% differential between the SDCWA rates the City anticipated in the rate model and the actual SDCWA rates which take effect in January 2025. As illustrated in Table 1 later in the report, the average customer will see an increase of just over 3% on their bi-monthly bills as a result of the SDCWA pass through rate increases. As a best practice, almost all water agencies (20 out of 23) in San Diego County have a pass-through provision in their adopted rate schedules allowing them to automatically pass on any increases in SDCWA rates to customers. Poway does not currently have a pass-through provision which is why slaff is bringing this item forward and recommending the City initiate the Proposition 218 process to incorporate the SDCWA rate increases into the City's water rates when they take effect in January 2025.
October 15, 2024, Item #7
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December 3, 2024, Item #11
ATTACHMENT C
Recommended Action:
It is recommended the City Council direct staff to set the public hearing for December 3, 2024 and proceed with the Proposition 218 process which includes mailing the notice of public hearing to ratepayers (Attachment A) pursuant to California law for this proposed wholesale pass-through water rate adjustment.
Discussion:
On November 2, 2021, the City adopted new rate structures and four-year rate increases for water, recycled water, and wastewater rates that are effective for calendar years 2022, 2023, 2024 and 2025.
Actual City water purchase costs for 2022, 2023 and 2024 have been in close alignment with City projections and budgeted figures. However, after a review of projections for wholesale water purchase costs, specifically the new rate increases adopted by the San Diego County Water Authority (SDCWA) that take effect in January 2025, new water pass-through rate increases are needed for 2025, to ensure the financial sustainability of the water enterprise system. This staff report will focus on· what is driving the proposed pass-through rate increases.
Proposed Water Rates:
In November 2021, the City Council adopted four-year water rate increases to cover calendar years 2022, 2023, 2024 and 2025. The final approved increase will take effect in January 2025. The approved rates cover the increasing costs of providing safe, reliable water on demand �o ratepayers. While Poway's four-year rates anticipated increases in the cost to purchase water of 6% per year, the approved SDCWA rate increase of 13.52% for 2025 is more than double what was anticipated in our rate model. The Water Fund cannot absorb these large increased costs for wholesale water purchases. which are projected to result in a $1.27 million revenue shortfall in water purchase costs.
Current City rates cannot absorb these unplanned large increased costs for wholesale water purchases. Out of 23 agencies, the City is one of three retail water providers In San Diego County that does not have a wholesale service pass-through provision authorizing automatic pass-through of these wholesale service cost increases. These industry standard, best practice, pass-through provisions will be incorporated for City Council consideration with the next full cost of service study.
This proposed water pass-through adjustment would be the only pass-through adjustment for the City in 2025 regardless of subsequent hypothetical adjustments from the SDCWA that may be effective in 2025 prior to the completion of the next full cost of service study.
Imported Water:
The lone factor driving the proposed pass-through rate increase is increases to City purchased water costs charged by the SDCWA. San Diego County has a semi-arid climate. Before 1947, the San Diego region relied on rainfall and groundwater to meets its water needs (SDCWA, Urban Water Management Plan 2020). As the economy and population grew, local water resources became insufficient to meet the region's water supply needs and required imported water from hundreds of miles away to support the growth. Much of the region's water is imported from northern California near San Francisco and Sacramento (i.e. the Bay-Delta).
Importing water is very energy and infrastructure intensive. Over time, the cost to transport this water increases as factors like energy prices increase. Investment by SDCWA into regional water supply and infrastructure projects to reduce reliance on imported water and mitigate the effects of natural October 15, 2024, Item #7
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December 3, 2024, Item #11
disasters, such as earthquakes, is also expensive. For example, SDCWA's investment into the Claude "Bud" Lewis Desalination Plant cost close to $1 B, but it gave the region a new drought-proof, locally controlled supply of water.
Imported water represents almost 60% of City water operating costs. When imported water costs increase, this significantly impacts City water rates which are passed on to customers. The SDCWA rate and charge increase to the City is 13.52% for calendar year 2025. Since Poway's water rates are comprised of several factors (i.e. maintenance and operation of the water system, water treatment costs. and staffing costs), the actual pass-through rate increases to customers will be less than the
7.52% differential between the SDCWA races the City anticipated in the rate model and the actual SDCWA rates which take effect in January 2025. As illustrated in Table 1 later in the report, the average customer will see an increase of just over 3% on their bi-monthly bills as a result of the SDCWA pass through rate increases. In an effort to help mitigate impacts to member agencies, SDCWA took several �ctions to reduce the increases to rates including applying grant funding of $19.7 million, delaying capital expenses of $7 million, and trimming operating costs by $2 million. Their rate increase was driven by an average rate and charge increase of 11 % from the Metropolitan Water District (MWD), one of SDCWA water suppliers, along with wholesale costs from operating the Claude "Bud" Lewis Desalination Plant. Additionally, the impacts of both the Rainbow and Fallbrook Municipal Water District's detaching from SDCWA has resulted in an increase in SDCWA costs being spread among the remaining 23 member agencies that continue to receive water from the SDCWA The SDCWA also has declining water sales to those remaining 23 member agencies which results in less water sold to spread SDCWA costs. The SDCWA projected their water sales downward by 20% and 15% from previo us adopted figures for Fiscal Years 2024 and 2025, respectively (source: SDCWA Staff Report for Fiscal Years 2024 & 2025 Mid-Term Budget, June 19, 2024). The result is an increase in costs spread among less units of water sold for the remaining SDCWA member agencies, including Poway.
Due to the substantial increase in water purchase costs from SDCWA, wholesale costs to the City have increased beyond the projected 6% annual cost increase for calendar year 2025 by $1.27 million. As a result of this significantly higher increase in wholesale water purchase costs beyond the 6% SDCWA rate increases included in the adopted rate structure. staff is recommending an adjustment to pass through SDCWA water rate increases to recover these higher than anticipated costs which help ensure the ongoing financial stability of the water enterprise.
The City retained Raftelis Financial Consultants (Raftelis) in 2021 as utility rate experts in the water and sewer rate setting field for over 30-years. Raftelis provided a Water Rate Model and recommendations resulting in the noted water rate adjustments for calendar years 2022, 2023, 2024 and 2025. In May 2024, the City again retained Raftelis to provide a limited-scope update to the noted Water Rate Model based on the large wholesale water rate increases the SDCWA adopted for 2025.
Raftells completed its analysis with the results included in a pass-through technical memorandum (Attachment B). The recommended water pass-through rate adjustments to recover the increased SDCWA wholesale water increases result in a uniform increase in water use (commodity) rates to City customers of $0.32 per billing unit (1 unit= 100-cubic feet= 748 gallons).
Table 1 below shows the estimated impact to residential customers who have a¾" water meter and use 29 units of water over one bimonthly billing period (every two months).
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December 3, 2024, Item #11
Table 1: Estimated bimonthly Residential Impacts of Wholesale Water Rate Pass Through - - - -
Debt Funding Option
Revenue Increase(%)
Estimated Water Bill'
Impact (Sl
- - - -
Existing
NIA
$269.90
NIA
- - -
Ap-proved i - Pro"posel --I
Jan.2025 Jan.2025
8% 3.2%2
$293.41 $302.73
$23.51 $9.32
1. Assumes the average residential customer has a¼" meter and uses 29 units of water bimonthly.
2. Propos�d rate Increase impact for the average residential customer.
As the table shows, the average residential customer would be paying $9.32 more per bimonthly billing period for water in January 2025 with the proposed rate adjustment. This impact reflects the difference between the already approved January 2025 rates with the proposed pass-through wholesale water rate adjustment.
Community Outreach:
To help the community understand the impacts of the proposed pass-through rate Increases, staff updated the residential bill estimator tool Chttps://poway.org/175/Rates-Feesl. This will help evaluate how the proposed increases impact their specific usage patterns. This tool, as well as information specifically about the majority-protest public hearing, and proposed rates. will be posted to the homepage of the City's website and the Water and Sewer Services section of the Finance Department webpage. This information will also actively communicated to the public via the Poway Today e newsletter.
Timeline:
The following graphic shows the proposed rate cycle for the potential rate adjustment.
Set Pu,blic t-tearing:
October l S, 2024 It
Mail 218 Notice:
By October 18, 2024
Public Hearing:
December 3, 2024
Rates Effective:
January 1, 2025
EnvjronmentaJ Revjew:
This action Is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
There is no direct fiscal impact associated with this staff report because it only sets the public hearing.
However, based on the information contained in this staff report and the analysis completed by Raftelis, there will be insufficient revenues to fund water purchase costs without passing through the recently adopted SDCWA rate increases to ratepayers. Without the pass through, it is estimated the City will collect approximately $1.27 million less than needed to cover water purchase costs. Tapping into the Water Fund Reserves to cover this shortfall is not an option, as we are required to maintain the reserves at certain levels as a provision of the bond covenants for the water revenue bonds issued to pay for the Water Infrastructure Improvement Program.
Safe reliable water delivered on demand to an average residential ratepayer costs approximately one penny per gallon.
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December 3, 2024, Item #11
pµblic Notification:
The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed water, recycled water, and wastewater rates. The notice (Attachment A) will be mailed at least 45 days prior to the public hearing, or on or before October 18, 2024. The public hearing will take place as follows:
Attachments:
Tuesday, December 3, 2024 at 7:00 p.m.
City of Poway Council Chambers
13325 Civic Center Drive
Poway, CA 92064
A. Notice of Public Hearing: Proposed Pass-Through Water Rates B. Raftelis Water Rate Technical Memo
Reviewed/Approved By:
�_Vv-
Wendy �erman
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney Citv Manager
October 15, 2024, Item #7
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December 3, 2024, Item #11
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Date
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10/22/2024
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Last Name
Krafton
Anderson
Pearce
Monk
Higbee
Garland
Parada
May
Palladino
McCormack
Soliman
Springett
Monk
Geidner
Pere
Bagley
Scott
Rubacky
Rubacky
Matthies
Paige
Baumann
Belasco
Grimmer
Carruthers
Fetsch
Carter
Carter
Steinmetz
Steinmetz
Stewart
Palmer-Gillum
Daughety
Poe
Runge
Runge
Springett
Lance
Quaglietta
Zoltan
Rumrill
Cook
Cook
Cabri-Rumrill
First Name Address No.
Margarita 12610
Phillip M. & Susan K. 15135
Evangeline C 14625
Annette
Lisa S. 12938
William 14933
Jacqueline 14281
Michelle 15454
Paulett 1S347
Kevin 15704
Samir 13726
Vanessa & Drew 13331
Annette
Joseph 13835
Renaud 15590
Kenneth & Cora 16439
Joseph & Donna 14653
Charles & Gayle 13331
Charles & Gayle 13333
Colleen 13606
Dennis 12807
Koral L 17213
Jay C. 14445
Francine 16823
Linda 14370
Gayle Marie 14321
John 12663
Dianne 12663
Jane 13995
Dennis 13995
Camille 12947
Elaine S. 14670
Jason 16325
Mary & Dennis 14423
Ann E. 12218
Todd E. 12218
Vanessa & Drew 13331
Ian 12361
Anthony 14747
Barbara 17031
Dennis A 14762
Michelle 12956
Neal 12956
Shirley A. 14762
PROP 218 WATER PROTEST LOG
2024
Street Name
(AVE, CT, DR, LN, PL, RD, ST, TRL, WAY) Comments
Roberto Way Invalid Missing Signature
Huntington Gate Dr 321-400-07-00
Fairburn St 323-340-67-00
Invalid Missing Signature/Address; Invalid Submitted as Email Yankton Road Invalid Missing Signature; Invalid Submitted as Email Golden Sunset Court 321-220-12-00
Palisades Drive
Oakstand Ct 278-442-04-00
La Manda Dr
Riparian Rd
Paseo De Las Cumbres 275-270-43-00
Tining Drive Invalid Missing Signature; Invalid Submitted as Email Invalid Missing Signature/Address; Invalid Submitted as Email Otis Place
Garden Rd
Bridlewood Road
Kalpana St.
Red Cloud Ln 323-032-37
Red Cloud Ln 323-032-38
El Mar Avenue 323-312-16-00
Amber Hill Ln 317-720 -50-00
Merlot Pl.
Twin Peaks Road
Avenida Florencia
Silver Heights Road
Twisted Branch Road
Butterwood Ct.
Butterwood Ct. Invalid Duplicate Address #22
Hickory Street
Hickory Street Invalid Duplicate Address #23
Slack St
Buckwood St.
Avenida Florencia
Midland Rd.
Sunrise Court
Sunrise Court Invalid Duplicate Address #28
Tining Drive
Mesa Crest Road
Fairtree Terrace
Cloudcroft Dr.
Poway Mesa Dr
Triumph Drive
Triumph Drive Invalid Duplicate Address #34
Poway Mesa Drive Invalid Duplicate Address #33
December 3, 2024, Item #11
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37 38
39 40
41 42
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47 48
49 11/18/2024
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11/21/2024
11/21/2024
11/25/2024
11/25/2024
Giulianotti
Leyking
Her
Locquiao
Hess
Cormode
Rowean
Kay
Blain
Jalaty
Chatman
Hayes
Hayes
Hayes
Hayes
Hayes
Hayes
Hayes
Hayes
Benham
Miller
Christina
Lawrence
Lu & Beth Ann
Margie
Roger
Patricia
Susan & William
Donald
Susan
Arthur
Gary & Nancy
lrenle
Charles R
Charles R
Charles R
Charles R
Judith F
Judith F
Judith F
Judith F
Hal
Silke & William
13609
14150
13378
14648
13784
14660
13540
14720
15230
14265
12965
15147
0 0
0 0
15147
0 0
15946
13121
PROP 218 WATER PROTEST LOG
2024
Del Poniente Rd
Arbolitos Dr.
Via Stephen
Plumwood Steet
Sycamore Tree Lane
Plumwood Steet
Cloudcroft Ct
High Valley Rd
Vali Hai Rd
Twin Peaks Rd
Slack Street
Eastvale Rd
Vali Hai Rd 321-080-38
High Valley Rd Invalid not connected to munipcal water service ; 321-080-32 Vali Hai Rd Invalid nat connected to munipcal water service ; 321-090-01 Vali Hai Rd Invalid not connected to munipcal water service; Invalid Duplicate Address; 321-090-01 Eastvale Rd Invalid Duplicate Address #46
High Valley Rd Invalid not connected to munipcal water service; Invalid Duplicate Address; 321-080-32 Vali Hai Rd Invalid not connected to munipcol water service; Invalid Duplicate Address #47; 321-080-38 Cumberland Dr
Wild Flower Ln
AGENDA REPORT CityofPoway
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
December 3, 2024
Honorable Mayor and Members of the City Council
Alan Fenstermacher, City Attorney
[email protected]
Alan Fenstermacher, City Attorney
afenstermacher@poway .org
Discussion and Possible Action to Fill City Council Vacancy
CITY COUNCIL
On November 25, 2024, District 1 Councilmember Brian Pepin provided notice that he will resign from his position on the City Council "effective upon my seat being filled with a replacement." (Attachment A). The term of office for this City Council seat concludes following the November 2026 General Municipal Election.
As a result of this notice from Councilmember Pepin, the City Council must discuss and provide direction regarding filling the vacancy. The Council has two options available for filling the vacancy:
calling a special election or appointment.
Recommended Action:
It is recommended the City Council consider the alternatives available for filling the City Council vacancy and provide direction to staff .
Discussion:
Government Code section 36512(b) obligates the City Council to take action within 60 days of the commencement of the vacancy and sets forth the options which the Council may choose from to fill the vacancy. Accordingly, while a vacancy does not yet technically exist, conservatively, the City Council has until January 24, 2025, to either (1) appoint a replacement for the remainder of Council member Pepin's term, or (2) call a special election to fill the seat for the remainder of the term.
Options to Fill the Vacancy:
Option 1 - Special Election: The City Council may call a special election to fill the office for a term to expire following the November 2026 General Municipal election. The special election must be held on the next regularly established election date not less than 114 days from the call of the special election. (Gov. Code § 36512(b)(1 ).) As a result, any special election called by the City Council would occur at the November 2025 election date, because the March 2025 election date is less than 114 days 1 of 5
December 3, 2024, Item #12
from even November 25, 2024. (Elec. Code § 1000.) The most recent "rough" cost estimate the City has from the County Registrar of Voters (ROV) for the cost of a special election to fill a district seat is between $175,000 - $300,000. This was provided by the ROV in 2023, for the previous City Council vacancy. This is an unbudgeted cost.
Option 2 -Appointment: The City Council may make an appointment to fill the vacancy. Because the vacancy occurred within the second half of Councilmember Pepin's term, the appointment would be for the remainder of the term. (Gov. Code § 36512(b)(2)(B).) In this situation, Council member Pepin will hold the office until appointment of a replacement, and he could vote on the appointment, as is permitted in cities with a by-district method of election. (Elec. Code§ 36512(e).) An appointment may be made at the December 3, 2024 City Council meeting or at any regular or special meeting held before or on January 24, 2025. The appointee must be a resident of Poway's District 1, and a registered voter therein. The appointment must be made by a majority vote.
Appointment Options:
• Immediate Appointment: If the Council appoints an individual to fill the vacant seat immediately, the oath of office can be administered by the City Clerk and the newly appointed Council member could be seated immediately.
• Make an Appointment at a later meeting: If the Council decides to have interested parties apply for the vacant seat, with the appointment to take place at a subsequent meeting, applications would be made available in the City Clerk's office and on the City's website for that purpose. If the Council pursues this alternative, it may also wish to take the following actions at this meeting:
1. Announce the vacancy and solicit applications;
2. Set a filing deadline for the submittal of applications; and
3. Conduct a public meeting to hold interviews and make a selection.
Environmental Review:
This informational report and potential action regarding filling a vacancy is not a "project" subject to California Environmental Quality Act (CEQA).
Fiscal Impact:
The most recent "rough" cost estimate the City has from the ROV for the cost of a special election to fill a district seat is between $175,000 - $300,000. This was provided by the ROV in 2023, for the previous City Council vacancy. The ROV noted multiple qualifiers that could impact cost. There is no fiscal impact for filling the vacancy by appointment to serve the remainder of Council member Pepin's term.
Public Notification:
None.
2 of 5 December 3, 2024, Item #12
Attachments:
A. Resignation Email from Councilmember Pepin
B. City Council District Map
Reviewed/Approved By:
Assistant City Manager
3 of 5
Reviewed By:
Alan Fenstermacher
City Attorney
Chris Hazeltine
City Manager
December 3, 2024, Item #12
Chris Hazeltine
From:
Sent:
To:
Subject:
Follow Up Flag:
Flag Status:
City Manager Hazeltine,
Brian Pepin
Monday, November 25, 2024 1:58 PM
Chris Hazeltine
City Council District 1
Flag for follow up
Flagged
I'm emailing to let you know that I will be stepping away from the city council effective upon my seat being filled with a replacement.
My work in political consulting and communications consulting has expanded and grown since I joined the city council, and I'm choosing to focus on continuing to grow my business in the coming years.
It has been a privilege to work with Mayor Vaus, my colleagues on the city council, you, and all of Poway's talented city staff. I'm confident that Poway will continue to prosper and thrive moving forward.
Thank you,
Brian Pepin
4 of 5
1 ATTACHMENT A December 3, 2024, Item #12
City of Poway
District Map
Ordinance No. 852
Adopted Feb. 15, 2022
5 ofS
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2024 Elections
District 2
District 4
2026 Elections
Mayor - At Large
District 1
District 3
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ATTACHMENT B
Map layers
Water Area
Streets
Landmark Area
River
December 3, 2024, Item #12